CALGARY, Sept. 12, 2016 /CNW/ – Yangarra Resources Ltd. (“Yangarra” or the “Company”) (TSX:YGR) provides an operations update.
Yangarra flow tested the 15-19 Duvernay well over the past weekend after its initial 45 day soak period. Gas rates ranged from 3.2 mmcf/d to 3.5 mmcf/d with a final rate of 3.4 mmcf/d and a free condensate (~60○ API) rate of 50 – 100 bbl/mmcf with an average of 77 bbl/mmcf. Water flow-back rate was 75 bbl/h at the start of flow test declining to 21.5 bbl/h at the end of the test.
The well was shut-in after the test and will remain shut in for another rest period of 30-45 days which will allow more water to soak into the desiccated rock in the reservoir. A pipeline connecting the well to Yangarra’s 2-4 facility will be constructed and the well is expected to be placed on-stream at the end of October.
Yangarra recently acquired four additional sections of Duvernay land at crown sales and now has a contiguous, nine square section block with one additional section one mile offsetting, for future development. If the play can compete for capital, the current pad-site is designed to accommodate five additional Duvernay wells.
Yangarra re-commenced its Cardium drilling program in August. The first well has been drilled (100% YGR w.i.) with a 1.6 mile horizontal (“HZ”) leg. The well will be completed next week with a planned 70 stage 1,050 tonne coil slick water frac into a cemented liner/sliding sleeve HZ section. The rig has been moved to a 2 mile HZ (100% YGR w.i.) location nearby. Both wells are located on new farm-in lands.
Plans include the drilling of six Cardium extended reach wells in 2016; however, the Company will closely monitor commodity prices and will adjust the drilling program accordingly.