Q2/22 broadly in line with expectations. Q2 volumes of 11,772 boe/d were slightly ahead of RBC/consensus estimates of 11,546/11,614 boe/d. This drove in-line CFPS of $0.34, compared to RBCe/consensus of $0.36/$0.32. Q2 capital spend totaled $31 million (RBCe/consensus: $40/$30 million), which featured five successful Clearwater A wells in West Marten Hills, and 9/4 injection/water source wells in Marten Hills in supporting EOR acceleration.
Marten Hills West delineation continues. The Marten Hills West program continues to deliver strong results with seven recent well results showing IP30s ranging from 109 to 366 bbl/d (average: 245 bbl/d). Management has drilled 13 wells in Marten Hills West YTD (100% success rate), punctuated by five Clearwater A wells coming on production in Q2/22 with July volumes reaching roughly 1,600 bbl/d. Management has planned another 19 step-out locations for the balance of 2022 and plans to drill its first Clearwater A water injection pilot prior to year-end.
Updates at Core Marten Hills, Greater Peavine, McCully. Headwater drilled 13 injection and water source wells alongside one production well in Q2/22 at Marten Hills; currently 35% of the field (3.5 sections) is under waterflood, with Headwater on track to increase this to 65% by H1/23. The company added 6.75 additional sections of land in Peavine through land sales, increasing its Greater Peavine acreage to 110 sections. Management plans to add a fourth rig to drill eight Peavine wells and test eight prospects beginning in Q4/22. Headwater also shut-in its McCully asset on May 1, 2022, and will restart the asset in winter 2023 to capitalize on premium gas pricing.
2022 guidance maintained. Management maintained its 2022 capital guidance of $230 million after lifting this in Q1/22 to support land expenditures ($30 million), 20 incremental wells ($25 million), roads and pad construction ($30 million), and incorporating inflation (10%). Headwater currently guides for 2022E average volumes of 13,000 boe/d (exit: 16,500 boe/d)