Facilities - Operations - Birchcliff Energy

Facilities

Birchcliff plant

As at December 31, 2015, Birchcliff had a 100% working interest in four gas plants (including the PC Gas Plant) and one oil battery, as well as various working interests in an additional seven gas plants (one of which is operated by Birchcliff) and one oil battery.

During 2016, the Corporation expects to spend approximately $39.0 million on facilities and infrastructure including approximately $24.8 million of capital for the Phase V expansion of the PC Gas Plant. These investments will help the Corporation to control infrastructure and continue to reduce its per boe operating costs.

PC GAS PLANT

Birchcliff’s 100% owned PC Gas Plant, which is currently licensed to process up to 180 MMcf/d of natural gas, is located in the heart of the Corporation’s Montney/Doig Natural Gas Resource Play. The strategically situated site for the PC Gas Plant enables the Corporation to control and operate all essential infrastructure from wellhead to sales point.

The low operating costs of the PC Gas Plant and related infrastructure gives the Corporation a strong competitive advantage over others paying for third-party natural gas processing. The PC Gas Plant is a key component in positioning the Corporation as a low-cost finder and producer of natural gas on the Montney/Doig Natural Gas Resource Play.

In September 2014, the Corporation completed the Phase IV expansion of the PCS Gas Plant, which expanded processing capacity to 180 MMcf/d from 150 MMcf/d. The cost of the Phase IV expansion was approximately $11.6 million.