Free Cash Flow Engine
The northeast British Columbia Dawson property is the foundation of ARC’s profitable low cost Montney natural gas business. Dawson has consistently delivered results that exceed expectations, establishing itself as one of the best fields not only in the Montney but in North America. Today, Dawson demonstrates robust economics, providing ARC with significant free cash flow, while boasting low operating costs and requiring minimal capital investment to hold production flat. With vast resource potential yet to be unlocked, Dawson will continue to be the site of future growth and value creation for ARC.
- Drilled 9 wells to sustain production at facility capacity limits
- Generated free cash flow of $100 million at $3/GJ AECO
- Achieved consistent well performance improvement since 2008 with growth in average reserves per well
In 2014, ARC plans to invest $54 million at Dawson. Plans include the drilling of nine wells, which are expected to hold production flat at approximately 167 mmcfe per day; maintaining the 120 mmcf per day Dawson operated gas plant at capacity as well as utilizing third party processing capacity. In 2014, ARC will continue to evaluate the fringes of the Dawson field, exploring new ways to unlock incremental value.