Hilcorp Energy Plans 2025 Projects for San Juan Trust
Hilcorp Energy's 2025 Capital Expenditure Plan
Argent Trust Company, acting as the trustee for the San Juan Basin Royalty Trust (NYSE: SJT), has announced an exciting capital expenditure plan for the year 2025. This plan comes directly from Hilcorp Energy Company, the operator of the Trust's interests, detailing an investment of approximately $9.0 million dedicated to various projects aimed at enhancing resource extraction and overall operational efficiency.
Project Breakdown in the 2025 Plan
The 2025 Plan encompasses a total of 29 projects which aim to advance the extraction capabilities within the San Juan Basin. Hilcorp has allocated around $4.0 million specifically for seven new vertical drilling initiatives, focusing on the Dakota and Mesaverde formations. Additionally, another $4.5 million is earmarked for 22 projects related to recompletions and workovers in the Fruitland Coal formation, and roughly $0.5 million is set aside for facilities projects that include crucial natural gas compression upgrades.
Revising Project Expectations
It is important to note that Hilcorp's plans may undergo adjustments based on their assessments of future conditions and market variables. The estimates provided reflect an ongoing commitment to the Trust's interests but remain subject to change as the company reassesses the assumptions guiding the 2025 Plan. Investors and stakeholders can expect potential variations in actual capital expenditures compared to the initial projections.
Review of 2024 Expenditures
Looking back at the expenditures in 2024, Hilcorp projected a capital expenditure of around $34.0 million. The actual capital used from January through November of that year reached approximately $33.6 million. Hilcorp reported that about $24.6 million was allocated towards two new horizontal drilling projects undertaken in the Mancos formation. Furthermore, approximately $8.0 million went into varied recompletions and workovers while an additional $1.0 million was devoted to enhancing facilities projects that support natural gas operations.
About San Juan Basin Royalty Trust
The San Juan Basin Royalty Trust acts as a crucial player within the energy sector, focusing on leveraging mineral interests in the region. Its operations are centered on the management and oversight of resource extraction activities, aiming to yield benefits for its beneficial owners through strategic project planning and execution.
Contact Information
For more details, stakeholders can reach out to:
San Juan Basin Royalty Trust
Argent Trust Company, Trustee
Nancy Willis, Director of Royalty Trust Services
Toll-free: (855) 588-7839 or (866) 809-4553
Fax: (214) 559-7010
Website: www.sjbrt.com
Frequently Asked Questions
What is the purpose of Hilcorp's 2025 capital plan?
Hilcorp's 2025 capital plan aims to enhance resource extraction and operational efficiency with an investment of approximately $9 million.
How many projects are included in the 2025 Plan?
The 2025 Plan encompasses 29 projects designed to improve operations within the San Juan Basin.
Where will the majority of the budget be allocated?
Most of the budget will go towards new vertical drilling projects and workovers in various formations.
Can the projects in the 2025 Plan change?
Yes, the projected projects and expenditures can be revised based on Hilcorp's ongoing assessments and market conditions.
Who can stakeholders contact for more information?
Stakeholders can reach out to Nancy Willis at Argent Trust Company via the provided toll-free numbers or visit their website.
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