Canada oil producer Baytex restarts idled wells as prices rise -source

Wed Jun 8, 2016 6:49pm EDT
 
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By Nia Williams

CALGARY, Alberta, June 8 (Reuters) - Baytex Energy Corp has restarted nearly all the heavy crude output it shut last year, encouraged by the months-long rally in oil prices, a source familiar with the matter said on Wednesday.

It is among the first signs of a North American producer restarting wells that were deemed uneconomic during the deepest part of the global crude price slump.

Around 95 percent of the idled Baytex wells have been turned back on, roughly half of them in May and the rest in June, said the source, who declined to be named because he is not authorised to speak to the media.

"We have not drilled any new wells, but old wells that were uneconomic are coming back on now prices are back up," he said.

The medium-sized producer did not immediately respond to a request for comment, but on a May 3 earnings call Chief Executive Officer James Bowzer said if prices held around $45 a barrel he expected to have most production back online by July. (Reporting by Nia Williams; Editing by David Gregorio)