abarrelfull wrote on 03 Nov 2011 08:12
Tags: canada delphi shale upstream
Latest News
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Delphi Energy Corp. (“Delphi” or “the Company”) is pleased to provide the following operations update.
Delphi has accumulated a total of 45 sections (41.5 net) of undeveloped land prospective for liquids-rich natural gas in the Montney formation on two separate blocks at its core area of Bigstone located within the Deep Basin of North West Alberta. The Company has increased its Montney rights on the Bigstone East block from 4.25 gross sections to 13 sections (11.0 net) through Crown land sales. Delphi will earn an additional five gross sections (3.75 net) at Bigstone East through an industry farm-in, with the drilling of its third Montney well, planned to commence drilling prior to year-end. At Bigstone West, the Company holds 27 gross (26.75 net) sections of Montney rights.
Delphi has contracted two drilling rigs to kick off its Bigstone Montney horizontal drilling program. Both rigs are expected to begin drilling operations within the next week.
The first well, located on the East block, will be drilled from a surface location at 1-19-60-22 W5M with a planned total measured depth of 5,700 metres. The second well, on the West block, will be drilled from a surface location at 1-33-60-24 W5M with a planned total measured depth of 6,000 metres. The targeted 2,750 metre “extended-reach” horizontal section in both wells will be completed utilizing multi-stage fracturing technology.
Industry horizontal drilling activity in the greater Resthaven/Bigstone/Simonette/Fir areas remains very busy where more than 33 horizontal wells have either been drilled or are currently being drilled into the Montney formation. Completion results reported to date have yielded strong natural gas test rates of up to 15 mmcf/d, with natural gas liquids content up to 70 bbl/mmcf.
At Bigstone East, the Company’s planned 1-19 well is immediately offsetting a recently drilled industry competitor’s well with a 1,254 metre horizontal length and reported test rates of approximately 4.3 million cubic feet per day of natural gas and 295 barrels per day of condensate (1,011 barrels of oil equivalent per day).
In the Fir area, located approximately three miles (five kilometres) to the south of Bigstone East, seven horizontal wells have now been drilled. Test rates reported to date range from 3.5 million cubic feet per day of natural gas and 225 barrels per day of condensate (808 barrels of oil equivalent per day), from a well with a 1,200 metre horizontal length, to a high of 15 million cubic feet per day of natural gas and 750 barrels of condensate (3,250 barrels of oil equivalent per day), from a well with over 2,500 metres of horizontal length.
The Company plans to construct compression and field gathering infrastructure in the first quarter of 2012 to connect to existing under-utilized third party infrastructure for transport and final processing at SemCAMS KA and K3 facilities.
Delphi will release its operational and financial results for the quarter ended September 30, 2011 on Wednesday, November 9, 2011. A conference call is scheduled for 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) on Thursday, November 10, 2011. The conference call number is 1-800-355-4959 or 416-695-6616. A brief presentation by David Reid, President and CEO and Brian Kohlhammer, Senior VP Finance & CFO will be followed by a question and answer period.
