Second Wave Petroleum Publicizes Continued Success In Judy Creek Beaverhill Lake Drilling Program
CALGARY, Aug. Eight, 2011 /CNW/ – Second Wave Petroleum Inc. (“Second Wave” or the “Company”) is pleased to announce that it has now drilled and accomplished its first four Judy Creek Beaverhill Lake horizontal oil wells below crude oil price yesterday the phrases of its beforehand announced Joint Enterprise and Farm-Out Agreement. All of the wells have been drilled by Second Wave to a total depth exceeding 4,000 meters and can qualify for a 5% incentive royalty charge for forty two months or 90,000 boe of production, whichever comes first.
As previously introduced, the company accomplished the 15-36-063-10W5 (04-31-063-09W5 floor location, forty% working interest) nicely utilizing multi-stage acid fracture expertise on April 2, 2011 and initiated move back from the effectively on April three, 2011. During the first seven and fifteen days of testing the 15-36 nicely flowed at common gross charges of crude oil price yesterday two,145 boe/d (86% gentle oil) and 1,825 boe/d (86% light oil), respectively. Cumulative manufacturing from the 15-36 over the primary fourth months was approximately 58,000 boe (80% gentle oil) with current every day manufacturing restricted to approximately 250 boe/d (90% mild oil).
Production from the 15-36 effectively has been restricted to its Maximum Fee Limitation (MRL) of roughly 250 boe/d since the tip of July and the corporate’s other Beaverhill Lake horizontal wells might be topic to the identical production restrictions after expiry of their new oil effectively manufacturing interval of four months. MRL restrictions on these wells will stay in impact until good production practice is authorized by the Power Sources Conservation Board (ERCB) for the Beaverhill Lake formation on Second Wave’s lands. The corporate anticipates that these limitations may very well be partially eliminated in early 2012 upon approval of a waterflood in the Beaverhill Lake formation. Second Wave at present operates a waterflood in its Judy Creek Pekisko oil pool and has constructed infrastructure that might accommodate a waterflood within the Beaverhill Lake formation in 2012.
The 01-28-063-09W5 (sixteen-20-063-09W5 floor location, 40% working curiosity) Beaverhill Lake horizontal oil well was completed on July 22, 2011 using multi-stage acid fracturing expertise with move back initiated on July 23, 2011. During the primary nine days of testing the 01-28 nicely flowed at an estimated average gross charge of approximately 1,300 boe/d (eighty five% gentle oil) with current estimated each day production of 650 boe/d (85% mild oil). The 01-28 properly will be subject to MRL restrictions of roughly 250 boe/d upon expiry of its first 4 month manufacturing period at the top of October 2011.
The sixteen-thirteen-063-10W5 (01-23-063-10W5 floor location, 40% working curiosity) Beaverhill Lake horizontal crude oil price yesterday oil properly was accomplished on August 2, 2011 utilizing multi-stage acid fracturing know-how with circulate again initiated on August 3, 2011. Throughout the first 5 days of testing the 16-thirteen effectively has averaged approximately 1,seven hundred boe/d (eighty five% light oil) with a current check fee of roughly 1,300 boe/d (eighty five% mild oil). The 16-thirteen effectively shall be topic to MRL restrictions of roughly 250 boe/d after the tip of November 2011.
The 08-14-063-09W5 (08-15-063-09W5 surface location, forty% working curiosity) Beaverhill Lake horizontal oil effectively was accomplished on June 22, 2011. In the course of the stimulation operation the corporate encountered operational difficulties which can have negatively impacted the effectiveness of the stimulation. The corporate anticipates that upon restoration of all completion load fluid the 08-14 well will produce at a fee of 50 to seventy five boe/d (eighty five% oil). The 08-14 well is at the moment producing roughly 50 boe/d (70% gentle oil) after forty days of manufacturing.
These four wells signify the primary 4 of a possible 13 horizontal Beaverhill Lake oil wells to be drilled underneath the company’s beforehand announced Joint Enterprise and Farm-Out Agreement protecting 50,000 acres of the corporate’s Beaverhill Lake mineral rights in Judy Creek. The settlement requires the corporate’s joint venture associate to pay eighty five% of the full prices to drill and complete every of the incomes wells in alternate for a 60% working interest in every 3,840 acre earning land block. Second Wave will pay the remaining 15% of the drilling and completions prices to retain a 40% working interest within the earning block.
Second Wave is currently working three drilling rigs in Judy Creek on its joint venture lands and anticipates drilling and completing between two and three further Beaverhill Lake horizontal oil wells per month for the remainder of 2011, to be funded through cash circulation and bank traces. The corporate’s internal Beaverhill Lake sort curves at present project 30-day preliminary rates of 295 boe/d with pay-outs of less than 18 months at current commodity prices. So far three out of the first 4 wells drilled have exceeded the corporate’s kind curve expectations.
The corporate will present additional information on its Beaverhill Lake drilling program previous to the tip of the third quarter.
Forward-Trying Statements. This news release accommodates ahead-trying statements as to the company’s inside projections, expectations and beliefs relating to future occasions or circumstances. Ahead-looking statements are typically (however not essentially) recognized by phrases reminiscent of “anticipate”, “imagine”, “funds”, “estimate”, “expect”, “plan”, “intend”, “potential”, “may”, “will”, “ought to” or related words suggesting future outcomes. Although the company believes that these ahead-trying statements are reasonable primarily based on at the moment obtainable data, undue reliance should not be positioned on them as they’re subject to recognized and unknown risks and uncertainties, a lot of which are past the corporate’s management. Forward-wanting statements are not ensures of future outcomes. There might be no assurance that the plans, intentions or expectations contained within the forward-trying statements or upon which they’re based mostly will in actual fact occur or be realized, and precise outcomes could differ from these expressed or implied in the ahead-wanting statements. The difference may be material.
Specific forward-wanting statements contained on this news launch embody statements relating to: royalties payable in respect of production from the corporate’s first four Beaverhill Lake horizontal oil wells at Judy Creek; the applying of Most Charge Limitation (MRL) production restrictions to the Beaverhill Lake wells; the potential of partial removing of MRL restrictions in early 2012 if a waterflood within the Beaverhill Lake formation is authorised; the number of further Beaverhill Lake horizontal oil wells anticipated to be drilled in 2011; the means by which the corporate expects to fund the drilling of such additional wells; and the 30-day preliminary production charge and pay-out horizon contemplated by the company’s internal Beaverhill Lake sort curves. In making such forward-trying statements, Second Wave has made various assumptions relating to, among different issues: the accuracy of geological and geophysical information and interpretations of that data; future oil and pure gasoline prices; future capital requirements; future change charges; the accessibility and value of related services; the company’s means to economically produce oil and gas from its properties and the timing and cost to take action; and its capacity to acquire qualified workers, gear and supplies in a well timed and value-efficient method.