CALGARY, Jan. 30, 2017 /CNW/ – Ikkuma Resources Corp. (“Ikkuma” or the “Corporation”) (TSXV: IKM) is pleased to provide an operations update with a focus on its new light oil pool.
Ikkuma completed drilling its second (offset) horizontal Cardium oil well in mid-October, 2016, performed a 25 stage slick water frac shortly thereafter, and flow-tested during mid-November 2016, for 6.4 days. During the flow test, the well free-flowed at fluid rates between 250-700 bbl/d (average rate of 427 bbl/d) with 60 – 100 boe/d of sweet natural gas. During the end of the flow period, the proportion of 420 – 450 API oil increased to about 40% of the total produced fluid. The ability to free-flow, with limited gas drive, combined with the high initial rates, is a strong indication that the well was successful in connecting to a naturally fractured reservoir system, which is typical in most foothills plays. Throughout the test, the fluid-to-gas ratio was observed to be sub-optimal for a long-term free-flowing production design, which led the Corporation to install a hydraulic pump jack in mid-January, 2017, to assist fluid flow to surface.
Approximately one week ago, the well was placed on mechanical lift. The temporary production facility is rate limited to about 230 – 300 bbl/d of fluid. During the first week of production, oil cuts have increased to 85 – 95% and rates are within the anticipated 230 – 300 bbl/d range, plus 50 – 70 boe/d of associated gas. If well performance continues to be high, Ikkuma will consider other forms of artificial lift to improve financial returns.
The well was shut in for approximately three weeks through late December, 2016 and early January 2017, for pressure recording. Subsequent data analysis, together with oil composition, indicates that the Corporation has discovered a second light oil pool, which further de-risks the large oil pool on the Corporation's 40 sections of land (88% WI) in the Narraway area of the Alberta Foothills.
Due to the success of the first two wells, the Corporation's approximately 150 potential drilling locations have been largely de-risked with drilling pads already constructed for up to 17 of these locations. Results to date have shown continuous production improvement related to well placement within foothills fracture fairways and fracture stimulation design.
Ikkuma has spud the first of two oil wells planned for the first quarter on a nearby pad targeting additional naturally fractured foothills fairways. The pad has been built to drill up to five wells, targeting different oil pools. Well costs to date have been within the anticipated $3.5 – $4.5 mm, utilizing one-off drilling operations. Under a more continuous program, Ikkuma is confident in its ability to reduce the well costs significantly.
Ikkuma Resources Corp. is a diversified junior public oil and gas company listed on the TSX Venture Exchange under the symbol “IKM”, with holdings in both conventional and unconventional projects in Western Canada. The technical team has worked together for over a decade in the Foothills Region of Western Canada, through two successful, publicly traded companies. The unique skills and repeat success at exploiting a complex, potentially prolific play type are fundamental ingredients for a successful growth-oriented company in Western Canada. Corporate information can be found at: www.ikkumarescorp.com.