Logan Energy Expands Operational Footprint with Major Developments

Logan Energy Corp. Growth Strategy Unveiled

Logan Energy Corp. (TSXV: LGN) is embarking on an ambitious growth journey. The Calgary-based company recently announced a series of developments that will significantly enhance its operational capabilities and financial performance in the coming years. With a firm grasp on expanding its land position in the Duvernay oil play and accelerating its Pouce Coupe field development, Logan seems poised for a transformative future.

Duvernay Land Position Expansion

Logan has successfully assembled an approximate 152-section land position within the greater Kaybob Duvernay oil play. This strategic acquisition encompasses properties in both North Simonette and Ante Creek, which together add over 140 planned oil drilling locations. The evaluation of these assets supports their economic viability and complements Logan's existing development endeavors in Pouce Coupe and Simonette Montney.

Strategic Development Plans

The company is aiming for an impressive production growth to 20,000-25,000 BOE/d by 2028, largely driven by its ongoing development of its robust Montney assets. In the next year, Logan's plans include executing a modern drilling campaign at Simonette, where it will work to demonstrate enhanced oil recovery potential.

Accelerated Development at Pouce Coupe

Logan's accelerated development of its Pouce Coupe assets is a key component of its growth strategy. Plans for a new 40 mmcf/d gas plant, compressor station, and oil battery will dramatically increase capacity from around 3,500 BOE/d to a target of 10,000 BOE/d. This facility is budgeted for approximately $32 million, designed to support both oil and gas outputs efficiently.

Budget Allocation for Infrastructure

In addition to the $32 million earmarked for the gas plant, Logan is allocating another $15 million for related gathering and sales pipeline projects in 2025. The company is also exploring partnerships with other developers to reduce capital costs associated with pipeline structures.

Equity Offering and Financial Strategy

To fund these capital-intensive developments, Logan is launching a bought deal private placement with anticipated gross proceeds of $30 million. National Bank Financial Inc. serves as the sole bookrunner for this offering, ensuring adequate capital flow to fulfill Logan's growth initiatives.

Uses of Offering Proceeds

The funds raised from the equity offering are targeted towards accelerating Logan’s projects in both the Montney and Duvernay regions, strengthening its infrastructure, and covering general corporate costs associated with ongoing operations.

Committed Credit Facilities

The expansion efforts are further bolstered by a commitment letter from National Bank of Canada. This letter outlines new credit facilities totaling $125 million, integrating a delayed draw term facility and a senior secured revolving credit term facility. This funding strategy is set to replace the existing demand credit facility, enhancing financial flexibility for future projects.

Revised 2024 Guidance and Future Outlook

Logan's capital budget for 2024 has been revised upwards from $120 million to $140 million, reflecting the increased focus on major infrastructure projects. This budget expansion, alongside a thorough growth strategy, is projected to deliver over 47% average production growth for 2025.

Prospects for 2025

In the upcoming year, Logan expects to bring eight new wells online, alongside ongoing projects in Simonette and the proposed Duvernay wells. The projected budget of $170 million for 2025 highlights the company's commitment to both immediate and long-term growth.

Company Overview

Established through the spin-out of Spartan Delta Corp.'s early-stage assets, Logan Energy Corp. has positioned itself strategically in the competitive landscape of the Canadian oil and gas sector. With a strong management team and a focus on operational excellence, Logan aims to leverage its assets in Simonette, Pouce Coupe, and the burgeoning Duvernay play to realize significant growth.

Frequently Asked Questions

What is Logan Energy Corp.'s recent growth strategy?

Logan Energy is focusing on expanding its land position in the Duvernay oil play while accelerating development at Pouce Coupe, along with a new equity offering to support these initiatives.

How much is Logan's equity offering?

The company has announced a $30 million bought deal private placement to fund its development projects and enhance operational capacity.

What are the expected production targets for Logan Energy by 2028?

Logan Energy projects to reach production levels between 20,000 to 25,000 BOE/d by 2028 through the continued development of its assets.

What infrastructure projects is Logan Energy focusing on?

Key projects include a new 40 mmcf/d gas plant, compressor station, and oil battery, intended to double current production capacity at Pouce Coupe.

Where can I find more information about Logan Energy Corp.?

For additional details, interested parties can contact Richard F. McHardy, CEO of Logan Energy Corp., or visit their official website.

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