CALGARY, ALBERTA–(Marketwired – Nov. 26, 2013) – Delphi Energy Corp. (TSX:DEE) (“Delphi” or the “Company”) is pleased to provide the following operations update on its Montney capital program.
Delphi has completed and tested its fourth consecutive horizontal Montney well utilizing a 30 stage slickwater hybrid completion. The first three Montney wells at East Bigstone stimulated with the same 30 stage slickwater hybrid fracturing technique continue to exceed the Company’s type well expectations.
Delphi’s 100 percent working interest 15-30-60-23W5M Montney well was drilled to a total depth of 5,834 metres with a Company record horizontal lateral length of 3,014 metres. The well flowed on clean-up over 5.6 days, recovering approximately 27 percent of the initial load frac water and is now shut-in to equip and pipeline connect the well for production. After running production tubing, the well produced, over the final 24 hours, at an average rate of 9.4 million cubic feet per day (“mmcf/d”) of raw gas, 1,250 barrels per day (“bbls/d”) of wellhead condensate (133 bbls/mmcf of raw gas) and approximately 900 bbls/d of load frac water. For comparison purposes, Delphi’s best Montney producer to date, at 10-27-60-23 W5M, produced at an average rate of 8.8 mmcf/d of raw gas and approximately 750 bbls/d of wellhead condensate (85 bbls/mmcf of raw gas) over the final 24 hours of its 4.5 day clean-up test (previously press released on February 28, 2013). The 10-27 well has produced 286,000 boe (111,000 barrels of total natural gas liquids (“NGL”), 65 percent of which is field condensate) since coming on production in March 2013.
Total production for the 15 – 30 well over the final 24 hours of the 5.6 day clean-up flow, including additional estimated gas plant NGL recoveries of 33 bbls/mmcf of raw gas, was approximately 2,953 barrels of oil equivalent per day (“boe/d”), (53 percent field and plant NGL). The well is expected to commence production in December and consistent with the previous slickwater fracture stimulated wells will continue to recover load frac water over the next few months.
The 15 – 30 well was drilled across two sections in 30 days and set a record low Montney well cost for Delphi of $4.85 million. Drilling times for the Company’s Montney wells have decreased 35 percent and drilling costs have been reduced by 25 percent since the beginning of the Bigstone Montney program.
Drilling operations continue in East Bigstone with three gross (2.7 net) additional wells planned to be drilled prior to break-up in 2014.
Delphi Energy is a Calgary-based company that explores, develops and produces oil and natural gas in Western Canada. The Company is managed by a proven technical team. Delphi trades on the Toronto Stock Exchange under the symbol DEE.
Forward-Looking Statements. This release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, may”, “will”, “should”, believe”, “intends”, “forecast”, “plans”, “guidance” and similar expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this management discussion and analysis contains forward looking statements and information relating to the Company’s risk management program, petroleum and natural gas production, future funds from operations, capital programs, commodity prices, costs and debt levels. The forward-looking statements and information are based on certain key expectations and assumptions made by Delphi, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the capital availability to undertake planned activities and the availability and cost of labour and services.
Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently