To see the map associated with this release, click the following link: http://media3.marketwire.com/docs/para_graph1.pdf
Kaybob Drilling Activity
During 2012, Paramount was active drilling and completing wells in the Deep Basin, continuing to build production deliverability in preparation for the start-up of the new Musreau and Smoky deep cut facilities. The Company drilled 27 (21.2 net) wells in 2012, including 7 (6.0 net) horizontal Montney formation wells and completed 17 (13.1 net) wells, including 9 (8.0 net) Montney formation wells. The initial flow rates and NGLs content continue to be consistent with expectations, further confirming well performance profiles.
The Company's producing Falher formation wells have on average performed in accordance with the anticipated type curve below: http://media3.marketwire.com/docs/307pou_graph2.pdf
NGLs transportation and fractionation capacity constraints have temporarily limited Paramount's ability to bring on Montney formation wells due to their higher liquids content. The Company has continued to drill and complete Montney wells in advance of the Musreau and Smoky deep cut facilities expansions and test results from the latest wells continue to be consistent with earlier wells, further confirming expected recoveries from this formation. The following table summarizes test results for Montney formation wells rig released in 2011 and 2012:
Test Results(1) ---------------------------------------------Location Avg. Rate Pressure(2) Duration---------------------------------------------------------------------------- (MMcf/d) (PSI) (Hrs)Musreau 11.6 2,029 6Musreau 8.6 1,006 20Musreau 6.1 1,159 2Musreau 6.6 2,068 64Musreau 12.4 2,067 1Smoky 4.1 584 4Smoky 10.9 3,454 56Musreau 9.0 2,455 1Musreau 11.0 2,248 31Musreau 6.5 2,373 36--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Test rates represent the average rate of gas-flow during post clean-up production tests up the largest choke setting. All wells were stimulated using frac oil and substantially all fluids recovered during the test periods were load fluids. As a result, fluid volumes recovered during the tests have not been disclosed. Pressure transient analyses and well-test interpretations have not been carried out for these wells and as such, data should be considered to be preliminary until such analysis or interpretation has been done. Test results are not necessarily indicative of long-term performance or of ultimate recovery.(2) Average flow-back casing pressure for the duration of the test.
