At December 31, 2012, unutilized credit available on the Company's $125.0 million banking facilities was nearly $32.1 million (26 percent of available bank facilities), providing support for the Q1 2013 capital program.
Delphi's undeveloped land position at December 31, 2012, a measure of its future growth prospect inventory, was 196,543 net acres (307 sections). The Company has regulatory approval to drill up to four natural gas wells per pool per section on its lands at its three core properties of Bigstone, Hythe and Wapiti. Delphi increased its land holdings in 2012 (including the farm-in lands) on its East Bigstone Montney play to 78.5 gross (66.2 net) sections.
Bigstone Montney Program
At East Bigstone, Delphi recently brought its fifth horizontal Montney well on production. The 10-27-60-23W5 well was drilled during the first quarter of 2013 to a total depth of 5,260 metres with a horizontal lateral length of 2,407 metres. The well was completed with a 30 stage (all of which were successful) slickwater hybrid completion. The well was brought on production on March 5, 2013 through the Company's Montney compression and dehy facility and over the first 14 full days of production, averaged 6.8 million cubic feet per day ("mmcf/d") of raw gas with associated field condensate production averaging 101 bbls/mmcf of raw gas. Including plant recovered liquids (estimated to be 35 bbls/mmcf raw gas), the average rate over this time period is estimated to be 1,917 boe/d. Total liquids production over this period contributed 921 bbls/d, 80 percent of which is field and plant recovered condensate. The well has recovered approximately 26 percent of the initial load frac water volumes to date. Current total production from the well is consistent with the 14 day average, with a current field produced condensate to gas ratio of 83 bbls/mmcf raw gas. The 10-27 well is expected to payout in less than one year.
The previously reported 15-10-60-23W5 well, completed with a 20 stage (all of which were successful) slickwater hybrid completion, has now been on production for 30 days and continues to outperform Company expectations. Over this period, the well averaged 4.2 mmcf/d of raw gas with associated field condensate production averaging 43 bbls/mmcf of raw gas. Including plant recovered natural gas liquids (estimated to be 35 bbls/mmcf raw gas), the average production over this time period is estimated to be 940 boe/d. Total liquids production over this period contributed 326 bbls/d, 65 percent of which is field and plant recovered condensate. The well has recovered approximately 38 percent of the initial load frac water volumes to date. Current production and field produced condensate to gas ratio is consistent with the 30 day average. This well was drilled with a shorter horizontal lateral length of 1,424 metres to assess the new completion liner and frac technique. Although it is the shortest horizontal well the Company has drilled, it is anticipated, based on initial production data, to outperform the first three horizontal Montney wells the Company drilled in East Bigstone, validating the new completion technique.
Initial results of both the 10-27 and 15-10 wells have surpassed the Company's expectations. As a result of the new completion technique employed, both wells are exhibiting shallower initial declines than the Company's first three wells drilled in East Bigstone (which were completed with gelled oil fracs). In addition, both wells are also producing at higher field condensate to gas ratios compared to the first three wells that average approximately 25 bbls/mmcf raw gas.
Most Popular Stories
- SpaceX's Satellite Launch Is 'Game-Changer'
- Reid Confident Congress to Pass Immigration Bill
- Donors Abandon GOP Over Gun Stance
- Maui Visitor Killed in Shark Attack
- Climate Change Early Warning System Urged
- Wisconsin Gov. Campaign Aide Fired Over Tweets
- Private Sector Employment Surges by 215,000 Jobs
- Mexico: 'Extremely Dangerous' Radioactive Material Stolen
- Newtown 911 Tapes Being Released Today
- Calif. Likes Christie, Says Tea Party's a Drag