CALGARY, July 16, 2019 /CNW/ – Journey Energy Inc. (JOY – TSX) (“Journey” or the “Company“) is pleased to provide an update on our Joint Venture with Kiwetinohk Resources Corp. (“Kiwetinohk“) in the East Duvernay, including the encouraging test rates achieved by the first three wells.
East Duvernay Joint Venture Operational Update
Since entering into the Joint Venture arrangement on August 29th, 2018, Kiwetinohk and Journey have been actively advancing the development of the East Duvernay property including:
- Expansion of the Duvernay Joint Venture land position to over 105,000 gross acres;
- Drilled, completed, and tested 3 wells with encouraging test results;
- Placed the initial two commitment phase wells on-production with excellent early results;
- Drilled, completed and flow tested an option well at 100/13-02-042-04W5/00;
- Drilled an option well at 100/16-12-044-04W5/00; and
- Licensed additional option wells at 100/12-07-042-03W5/00 and 103/03-29-042-04W5/00.
Two Well Commitment Phase Update
Kiwetinohk has drilled, completed, flow tested and placed on production the following commitment wells:
- Commitment well #1: HZ 102/16-15-042-03W5/00 (6,500m TMD; 3,590m horizontal length);
- Commitment well #2: HZ 102/15-31-042-03W5/00 (6,352m TMD; 3,413m horizontal length).
Further details on the drilling and completion of the commitment wells are included in Journey’s year-end press release dated February 27th, 2019 and the test results were press released on April 15, 2019. Both commitment wells were tied-in and placed on production May 8, 2019. For the period from May 8, 2019 to July 8, 2019 inclusive, the following production results were achieved.
Production Summary:
102/15-31-042-03W5/00 |
102/16-15-042-03W5/00 |
|
Total to Date: |
||
Flowing Time (days)(1) |
61 |
61 |
Oil (bbls) |
28,100 |
38,800 |
Water (bbls) |
17,900 |
29,000 |
Fluid (bbls) |
46,000 |
67,800 |
Natural gas (mmcf) |
50.3 |
52.4 |
May 8 –July 8 |
||
Oil (bbls/d) |
460 |
636 |
Natural gas (mcf/d) |
742 |
773 |
Natural gas liquids (bbl/d) |
54 |
56 |
BOE/d (boe/d) |
638 |
820 |
Average water cut (%) |
39% |
43% |
July 7 Flowing Pressure (kPag) |
10,000 |
4,000 |
Notes: |
(1) Flowing time represents full calendar days. |
(2) Production volumes in the table are based on May & June actuals plus July field estimates. |
These production rates continue to be on the higher end of our internal expectations. Both wells continue to be restricted. In particular the 15-31 well continues to flow at a very high tubing head pressure. Water cuts have declined steadily throughout the flow period with current water cuts of 37% at 15-31 and 42% at 16-15.
Option Well 100/13-02-042-04W5/00 (6,072m TMD; 3,056m horizontal length)
Kiwetinohk spudded this well on February 26th and rig released on March 31st. Prior to drilling the horizontal portion of the well, the vertical portion of the 8-16-042-04W5 well was logged through the Duvernay. This well is approximately 10 km away from the 6-28-042-03W5 stratigraphic test well (“6-28 Strat Well“) at the heel of the commitment wells. The logs confirmed the presence of the Duvernay zone in excess of 30 m in thickness, and with significantly higher interpreted porosity than the 6-28 Strat Well.
The horizontal lateral length in the Duvernay is approximately 3,056m. The well was completed over 47 intervals utilizing approximately 5,900 tons of sand and 560,000 bbls of load water. A brief clean up flow operation was conducted in early June. After milling out the plugs and installing production tubing, the final flow test began on June 21 at 7:00pm. Flow testing of the well continued until July 10, 2019 at 12:00 am. The results of this initial clean up and final flow test are presented below. The results show this well to be similar to the two currently producing commitment wells. Flow rates generally increased throughout the test as the choke sizes were gradually increased from 3.97mm to 8.73 mm. In addition, the water cut decreased to less than 50% throughout the test. The well produced little or no sand on the flow back.
Journey considers these preliminary results to meet or exceed its expectations. Although preliminary in nature, the results continue to support our hypothesis that a significant portion of the joint venture acreage is within the oil window in a highly productive area of the East Duvernay. With multiple commercial successes approximately 10 km apart, 2019 continues to be a transformational year for Journey.
Flow Test Summary:
100/13-02-042-04W5/00 |
|
Total to Date: |
|
Flowing Time (hours) |
663 |
Oil (bbls) |
7,342 |
Water (bbls) |
22,665 |
Fluid (bbls) |
29,607 |
Natural gas (mmcf) |
13.9 |
Cumulative Load Fluid |
3.6% |
July 8-10 (48 hours) |
|
Oil (bbls/d) |
622 |
Natural gas (mcf/d) |
1,360 |
GOR (cf/bbl) |
2,186 |
Water cut (%) |
52% |
API Gravity (º) |
47-49º |
Choke Size (mm) |
8.73 |
Flowing Pressure (kPag) |
9,700 |
Journey looks forward to updating our shareholders on future activities in the East Duvernay as further information becomes available.
About the Company
Journey is a Canadian exploration and production company focused on oil-weighted operations in western Canada. Journey’s strategy is to grow its production base by drilling on its existing core lands, implementing waterflood projects, and by executing on accretive acquisitions. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with water floods. Journey is also in the early phases of advancing development of an unconventional shale resource play in the oil window of the Duvernay with its joint venture partner, Kiwetinohk Resources Corp.