08:03 AM EDT, 07/09/2024 (MT Newswires) -- Advantage Energy ( AAVVF ) on Tuesday lowered its 2024 gas production guidance due to suppressed prices.

The company cut the guidance to 70,000-73,000 boe/d. It didn't say what its previous guidance was. The reduction is from natural gas and there is no change to liquids guidance. Advantage's gas-focused program has been reduced to 13 wells from 18, due to the strong performance of its recent wells and to avoid increasing supply at a time of lower prices.

A $20 million cut in capital guidance for this year, to between $260-$290 million, freed up the same amount in free cash flow, Advantage said.

The company added that production growth is expected to be 16% in 2025. The reduced gas drilling program this year is not expected to have a material impact to 2025 production.

Separately, Entropy, an Advantage subsidiary, released the final investment details of its post-combustion carbon capture and storage (CCS) project. Total CO2 capture capacity will be 160,000 tonnes per annum (tpa), in addition to the existing Phase 1 capacity of 32,000 tpa, the company said.

Total cost of Glacier Phase 2 capture equipment, compression, transportation and storage wells is $127 million. All capital expenditures are expected to be eligible for the federal investment tax credit of up to 50%, plus the upcoming Alberta carbon capture incentive program of 12%, the company said.

Entropy will also repower Advantage's Glacier Gas Plant by installing a 15 MW gas-fired turbine and selling power to Advantage via a 15-year power purchase agreement (PPA) while capturing 90% of the CO2 emissions from the turbine.