NAL Resources manages approximately 46,500 (28,500 net to the Corporation) boe per day and operates 90 percent of this production on behalf of NAL Energy Corporation (the "Corporation") and a subsidiary of Manulife Financial Corporation–a major Canadian financial institution. There are currently over 350 dedicated team members working at NAL in Western Canada. Our core areas include southeastern Saskatchewan, central Alberta and northeastern British Columbia. NAL operates four gas plants. The Sylvan Lake, Brent/Hanna and Sturgeon Lake gas plants are in Alberta and the Nottingham Gas Plant is located in Saskatchewan.
The Corporation is a public entity traded on the Toronto Stock Exchange as NAE, and was created in 1996 from assets that were previously owned by a number of insurance companies including North American Life.
2012 Guidance
NAL’s capital program for 2012 has been designed to be scalable and flexible in response to uncertain commodity price and market conditions. NAL is planning a $200-million capital program and expects to drill 124 gross wells. The Corporation anticipates operating over 90 percent of the capital expenditures in 2012 and is not facing material land expiries, providing significant flexibility over timing and scale of the program. NAL forecasts Corporation production to average approximately 28,500 boe per day in 2012 and will focus 85 percent of its capital on oil development opportunities in Alberta and Saskatchewan in 2012.
Core Properties
NAL's most concentrated core areas are in central Alberta, which offers multi-zone potential, and southeast Saskatchewan, where NAL has substantially increased its asset base since the Corporation's inception.
NAL also holds an average 20 percent working interest in a large, natural gas producing area under Lake Erie, Ontario. Eurogas Corporation is the operator of the field with daily production of approximately 3.0 million cubic feet per day (MMcf/day) net to NAL.
2012 Production Mix
Our 2012 production outlook projects 51-percent weighting in crude oil/natural gas liquids and 49-percent weighting in natural gas. Our Alberta operations produce a mixture of liquid-rich natural gas and light, sweet oil from multiple geological formations. In Saskatchewan, we produce light and sweet crude oil.
Note: Based on full-year guidance of approximately 28,500 boe/d.
Reserves
For detailed information about our reserves as of December 31, 2011, please review page 6 of our 2011 year-end press release. To download the press release, click here.