Saguaro Resources has secured a new funding of $50m to accelerate development of the liquids-rich Montney natural gas-bearing formation in Canada.

Its new financing has come from funds handled by CI Investments’ Signature Global Asset Management and EdgePoint Wealth Management.

The Canadian oil and natural gas company backed by private equity investors, Pine Brook Road Partners and Camcor Partners, holds a 100% operating stake in Montney in the British Columbia province.

Following the new funding, Saguaro has stated that it is all set to implement its accelerated development program in the region.

The program will be a low-risk opportunity that will result in giving significant value to the asset. According to Saguaro, the capital program can be implemented while sustaining reasonable debt metrics.

Saguaro's program will feature drilling of 28 wells this year. Out of this, 24 will be brought on-stream while the company will expand its processing facility to 100 MMcf/d.

As per oil and natural gas firm, its economic operations at Montney are expected to result in fast growth in production and reserves even in a below par environment concerning the commodity price.

Since its formation, Saguaro has carried out drilling at 32 horizontal wells. In 2016, the company’s exit production was over 12,000 boe/d. It claims to have tripled its production after it had begun commercial development in mid-2015.

Saguaro Resources president & CEO Stacy Knull said: "Saguaro has the potential to be one of the great value driven stories in the Montney. Our Company has a proven track record, attractive economics underpinned by stable condensate yields, significant growth potential and a strong financial position."

"With this funding we plan to ramp up our capital spend in 2017, 2018 and beyond. Our high free condensate yield and low drilling and completion costs provide very attractive economics at current strip prices.”

Knull concluded that the company is aiming to increase its 2016 exit production rate of 12,000 boe/d by more than twice by the end of next year.