At Ante Creek, the Company holds a 100% working interest in a six section, contiguous acreage block, on which RMP has identified an additional twenty-one, high impact, light oil horizontal drilling locations. The Company is scheduled to commence drilling its fourth Ante Creek horizontal well (13-27-66-24W5) the week of January 21, 2013 and expects to drill its fifth well by March 31, 2013.
Firm Service Processing Arrangement
In order to alleviate the gas processing constraints at Ante Creek, RMP successfully arranged firm service capacity at an area operator's gas plant, providing for the processing of solution gas associated with its Montney oil production. Firm service of 3.5 MMcf/d has been negotiated for calendar 2013, with 2.0 MMcf/d locked-in for both calendar 2014 and 2015. The Company is expanding its Ante Creek oil battery in order to increase processing capacity of its crude oil and associated solution gas. This expansion includes additional tank storage, multiple truck-loading stations and additional compression. The expansion is expected to be operational by mid-February 2013, enabling RMP to produce multiple wells.
Operations Update: Waskahigan, West Central Alberta
At Waskahigan during 2012, RMP successfully drilled and completed eleven, 100% working interest horizontal Montney oil wells. Initial production of these wells, on average, is tracking the Company's internal expectations, with an estimated ultimate recovery for each well of 160,000 bbls of oil (220,000 boe including associated solution gas). The thirty-day (producing) initial production (IP) average for nine of the wells drilled in 2012 is approximately 450 bbls/d of light oil (600 boe/d including 25% associated solution gas). The last two Waskahigan wells drilled in 2012 were recently tied-in and brought on-stream and have not yet achieved thirty days of production history.
RMP is currently drilling its twenty-seventh (27.0 net) Montney horizontal oil well (3-11-64-23W5) at Waskahigan, which is programmed to be the Company's longest horizontal well to-date, with a total measured depth of approximately 4,300 metres and a 1,900 metre horizontal section. A total of twenty (20.0 net) horizontal oil wells have been drilled by RMP with 100% success since the corporate re-structuring of Orleans Energy in May 2011.
At Waskahigan, RMP continues to establish and build a core Montney light oil resource project, with the requisite size and scale to drive significant future production and cash flow growth. The Company has accumulated an acreage position at Waskahigan encompassing 37 sections at 100% working interest providing for a future light oil drilling inventory of approximately 120 locations.
Exploration Drilling: Grizzly, West Central Alberta
At Grizzly, to the southeast of Waskahigan, RMP successfully drilled and completed an exploration well located at 12-26-62-23W5 (100% working interest), with test results confirming the existence of a Montney oil pool. The 12-26 exploration well was drilled to a total measured depth of 3,750 metres, with 1,438 metres of horizontal section. Completion operations encompassed an 18 stage, 270 tonne fracture stimulation (average 15 tonnes per stage). Flow-back results have demonstrated the Montney reservoir to be oil bearing and gas charged. The well is currently undergoing a new oil production test subsequent to an 84 hour clean-up and full recovery of the fluid used to fracture the well. During the first twenty-four hours of the current production test, it flowed approximately 700 bbls/d of 40 degree API crude oil (25% water cut) and 1.6 MMcf/d of associated solution gas for a total of approximately 1,000 boe/d at a flowing tubing wellhead pressure of approximately 300 psi. Please refer to important Reader Advisories at the end of this news release.
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