Birchcliff Energy Ltd T.BIR

Montney is 'the PLAY'

[not4anymore]

NORTH MONTNEY UPDATE

 

• Tourmaline continues to prepare the execution plan for the 100,000 boepd Conroy North Montney development project in the 2025-2027 time frame. Initial expenditures will commence in 2024 on newly acquired permits in the project area.
• A total of 18 Conroy-Aitken delineation pads have been drilled and completed over the past two years in advance of the major facility-filling development program as the company refines gas and liquid performance curves and optimum completion designs.
• The b-10-B pad at Aitken underscores the very strong economic returns in the general North Montney area. The six-well pad was drilled, completed, and brought onstream in late Q4 2021. Average per well IP 365 was 5.3 mmcf/d of natural gas and 224 bbls/d of condensate. Average per well recovery after 18 months onstream is 2.6 bcf of natural gas and 99 mbbls of condensate, and estimated average 2P reserves per well are 12.6 bcf of natural gas and 260 mbbls of condensate.
• Total capital investment in construction, drilling, completions, equipping, and pipeline tie-in for the six-well pad was $30.6-million. The income earned to date (revenue, net of royalties and directly attributable operating expenses) on the six-well pad is in excess of $130-million (before tax) resulting in a payout period of three months. The forecasted internal rate of return of the pad is well in excess of 1000 per cent, making it one of the most economic projects in the Company's history.
• The company has received 97 new permits in the area to date in 2023, including a significant portion of new surface disturbance permits.