06:19 AM EDT, 05/28/2024 (MT Newswires) -- Kiwetinohk Energy ( KWTEF ) overnight Monday unveiled an accelerated upstream capital spending program and changes to its credit facilities.

In response to strong liquids commodity prices and success with the 2024 capital and operating program to date, the company raised its forecast for 2024 capital spending to $320-$340 million, up from previous guidance of $275-$295 million.

Kiwetinohk allocated $315-$332 million of the total to upstream spending, with the remaining capital to be used for power spending.

The company revised its development program and accelerated completion of the three-well 9-11 Duvernay pad to late in the fourth quarter, redeploying capital from a planned single Montney well in Placid to a new three-well pad in Simonette.

The accelerated program is expected to have a limited impact on 2024 production, but it will boost average 2025 production by about 3 million barrels of oil equivalent per day, or roughly 10% from previous estimates, Kiwetinohk said.

Separately, the company's bank lenders have completed their semi-annual borrowing base redetermination of Kiwetinohk's senior secured extendible revolving facility, agreeing to renew and increase the company's borrowing base by 7%, from $375 million to $400 million.

The maturity date was also extended from by a year to May 31, 2026. The borrowing base consists of a $65 million operating facility and a $335 million syndicated facility.

Kiwetinohk amended and increased the unsecured demand revolving letter of credit facility with Bank of Montreal from $75 million to $125 million.

The increases will provide extra liquidity for current operations and additional funding flexibility to add to operational cash flows, supporting the company's expanded 2024 capital program.

Kiwetinohk's next semi-annual credit facility borrowing base review is scheduled for November.

Kiwetinohk has also filed a renewal preliminary short-form base shelf prospectus allowing the company to issue securities of up to $500 million over a 25-month period.

In addition, Kiwetinohk CEO Pat Carlson provided an updated letter to shareholders outlining some core elements of the company's strategy, including an explanation of how upstream, power and carbon capture and storage fit within the scope of the business.

"Within my letter I describe components of our energy transition strategy and discuss the possibility that the power generation and carbon capture assets should be held in a separate corporate entity; Kiwetinohk's views on capturing and financing the energy transition investment opportunity; the main activities we have undertaken to secure and maintain our social license to operate; and how the company is modifying well designs to add value to our upstream operations," Carlson said.