CALGARY, AB, Aug. 1, 2023 /CNW/ – Clearview Resources Ltd. (“Clearview” or the “Company”) is pleased to provide the following corporate update.
Clearview, as operator, has commenced drilling a 2-mile, extended reach, horizontal well targeting the light oil Cardium formation at Wilson Creek in west-central Alberta. The 15-25-043-05W5 (“15-25”) well was spud on July 28, 2023 and is the first drill in five years for the Company, following up on the successful 15-20-044-04W5 (“15-20”) horizontal light oil Cardium well at Wilson Creek drilled in 2018. The Company’s working interest in the 15-25 well is 67% as working interest partners elected to participate in the drilling operation. Completion operations are scheduled for August 2023 and will utilize high intensity completion technology, similar to the design used in the 15-20 well. The 15-25 well is anticipated to come on production in September and is expected to be fully funded by cash on hand.
Operated decommissioning projects for 2023 began in the first quarter and have been forecast to cost approximately $0.9 million for the year. This year’s program is focused on several well abandonments in an area closure project in east-central Alberta and multiple environmental site assessments.
As previously disclosed, Clearview’s production in certain areas was affected by the wildfires in Alberta in the second quarter. Production was also impacted by overland flooding in the second quarter and by both planned and unplanned third party facility outages. The wildfires did not cause damage to any of the Company’s assets or infrastructure, while the overland flooding did have some minor impacts to roads and bridges that have now been mostly resolved. The Company estimates its second quarter 2023 production to be approximately 1,440 barrels of equivalent per day (“boe/d”). With the majority of the Company’s production having been brought back on, production has averaged approximately 1,700 boe/d over the past two weeks based on field estimates. Clearview would like to thank its field operations staff for their proficient and diligent response to the wildfire and flooding issues; both in reacting to the threats of the wildfires and their timely response in bringing Clearview’s production back on-stream. The Company would also like to thank the tireless efforts of first responders and firefighters in battling the wildfires. They not only keep our communities safe but also protect valuable energy infrastructure in Alberta.
The Company’s lender has commenced its annual credit review, with the review expected to be completed by the time Clearview releases its second quarter 2023 financial and operational results on or about August 29, 2023. In the meantime, Clearview remains undrawn on its revolving operating facility of $10 million.
Clearview would like to thank its shareholders for their continued support as we evaluate our internal development plans and external opportunities to grow production volumes and adjusted funds flow towards providing liquidity for shareholders.
Clearview’s second quarter 2023 results will be released on or about August 29, 2023.
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