CALGARY, April 17, 2018 /CNW/ – Painted Pony Energy Ltd. (“Painted Pony” or the “Corporation“) (TSX: PONY) is pleased to announce significant discovery test results for the first Montney horizontal well drilled on the Beg block (the “Well“). This production test provided early flow data and liquids yields, and increases Painted Pony’s confidence in the potential of this block.
Beg Well Test Results
Painted Pony drilled an upper Montney horizontal test well to a vertical depth of 1,800 meters and a lateral length of 2,267 meters. During the final 8 hours of the 6.6 day test period, the Well averaged an estimated rate over 2,000 boe/d including 10 MMcf/d of natural gas and an estimated 360 bbls/d of liquids (60% condensate and 40% NGLs) based on well head condensate plus calculated gas plant liquids recoveries from gas analysis. The flowing pressure of the Well at the conclusion of the test period was 1,625 psi through a 5/8 inch choke. At the conclusion of the test period, Painted Pony had recovered approximately 25% of the total load water used during the completion of the Well. During this 8 hour test period, the Well was still flowing approximately 1,750 bbls/d of load water. Management believes the Well was still cleaning up at the conclusion of the test period. The initial cleanup and flow test was conducted within the limit of environmental flaring regulations and produced results significantly above management expectations.
The Well flowed with the final 24 hour rate averaging an estimated rate of over 1,900 boe/d including 9.5 MMcf/d of natural gas and an estimated 340 bbls/d of liquids, (60% condensate and 40% NGLs) based on well head condensate plus calculated gas plant liquids recoveries from gas analysis. Trace amounts of H2S were detected.
Although test data is preliminary, the estimated liquids to gas ratio is approximately 35 to 40 bbls/MMcf. The Well is not currently pipeline connected. Additional development is currently being reviewed and the timing of additional drilling and production scheduling will be considered along with our other development options. Production from the Well could be processed at the existing AltaGas Townsend facility through a future pipeline connecting Beg to the existing Blair and Townsend blocks.
Painted Pony’s Beg block is comprised of 36 net sections of Montney rights and is located on the northeast block of the Corporation’s Montney acreage in northeast British Columbia. The Beg block is approximately 12 kilometers northeast of the Corporation’s development activity on the Blair block. Based on the positive results of the Well and offset industry production, management anticipates all 36 sections to be prospective for Montney development.
First Quarter 2018 Release
Painted Pony expects to release first quarter 2018 operational and financial results after close of markets on Thursday, May 3, 2018.