SPE-V new 52 week high, $4.39
April 16, '14 - NR
Spartan Energy Corp. is providing a first quarter operational and drilling update. References to Spartan's operations in this press release include first quarter operations of Renegade Petroleum Ltd., which was acquired by Spartan on March 31, 2014. Operations update
Spartan was active in the field during the first quarter of 2014, drilling a total of 19 (17.5 net) wells. Of these, three (2.7 net) vertical wells were drilled in central Alberta targeting detrital oil, 10 (9.5 net) horizontal wells were drilled in west-central Saskatchewan for Viking oil and six (5.3 net) horizontal wells were drilled in southeast Saskatchewan targeting Mississippian oil prospects.
Central Alberta -- detrital oil
During the first quarter, the company drilled and completed three (2.7 net) Detrital vertical wells with a 100-per-cent success rate. Spartan's 2014 capital program and production forecast assumes first month average production (IP30) rates per well of 70 barrels per day for the detrital drilling program. Based on initial test rates, the company expects the results from these three wells to meet or exceed expectations. Two of the three wells are currently on production.
West-central Saskatchewan -- Viking light oil
In the first quarter, the company drilled 10 (9.5 net) Viking horizontal wells with a 100-per-cent success rate. Nine of the 10 wells have now been completed and are in various stages of postfracture stimulation, cleanup and being brought on production. The 10th well will be completed after breakup. Results from the company's Viking program are consistent with management's expectations in respect of both production rates and all-in costs.
Southeast Saskatchewan -- Mississippian light oil
In the first quarter, the company drilled six (5.3 net) horizontal wells targeting Mississppian light oil in the southeast Saskatchewan core area. Included within this number are four (3.3 net) wells that were drilled in the Queensdale property targeting the Frobisher/Alida formation. All of the Queensdale wells have now achieved a production history in excess of 30 days, with an average IP30 rate of 189 bbl/d.
In total, the company has now drilled 10 (7.8 net) wells in the Queensdale area. The average first month production rate (IP30) across the 10 wells has been 195 bbl/d. Based on these results, the average well in Queensdale achieves payout in under five months. The average cost to drill, complete and equip Frobisher/Alida wells in southeast is budgeted at $1.1-million per well.
Current production
Spartan's current production is approximately 6,600 barrels of oil equivalent per day (93 per cent light oil), based on field production estimates.
Budget update
The focus of Spartan's remaining 2014 capital program will be on the company's Mississippian assets in southeast Saskatchewan and, to a lesser extent, on the company's Viking prospects in the Dodsland area of west-central Saskatchewan. Spartan has plans to drill an additional 35 (30.9 net) horizontal wells targeting the Frobisher/Alida formation during 2014. Spartan will also drill nine (100-per-cent working interest) wells targeting the Midale formation. For budgeting purposes, Spartan is using a first month average production rate (IP30) of 60 bbl/d for the Frobisher and an IP30 rate of 96 bbl/d for the Midale. In the Viking, the company expects to drill 11 (10.5 net) horizontal wells. |
