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Vero Energy Inc. Provides Third Quarter Operational Update
Thursday, October 11, 2012
CALGARY, Oct. 11, 2012/CNW/ - Vero Energy Inc. (TSX - VRO, "Vero" or the "Company") is pleased to report its successful drilling program and operating results for the third quarter of 2012. During the quarter, the Company had a 100% success rate drilling 8 (5.7 net) Cardium horizontal wells. The Company continues to delineate its significant land base through step out drilling that resulted in 4 (2.7 net) wells which had no reserves booked in the 2011 year end independent reserve evaluation. There are 2 (0.9 net) wells remaining to be completed and brought on production.
Vero's team has now drilled 55 horizontal wells in the Cardium light oil play and has been one of the most active drillers in the play since late 2009. The team continues to optimize drilling, completions and operations within the play. Changes in drilling the last two operated wells in the third quarter resulted in significant improvement of drilling cycle times to 12 and 10 days respectively compared to 16 days average over the past year. These reduced times resulted in greater than a 15 percent drop or approximately $300 thousandoff the average drilling cost per well. Also, in two recent completions, the Company has used a Quick FRAC® system which has increased stages fracture completed to 26 from a prior average of 17 per well. Results are continuing to exceed estimated production type curves.
Operations were delayed in the second quarter and early in July with wet spring conditions but the Company did get caught up and completed its third quarter drilling plans prior to the end of September. Quarterly average production is estimated between 2,350 and 2,400 boed at 67% oil and liquids. Currently, the Company is waiting for the drilling rig to move and plans are to drill 5 (3.5 net) horizontal Cardium wells in the fourth quarter.
Further to its press release of September 13, 2012wherein Vero announced that it has entered into an arrangement agreement providing for a proposed business combination with TORC Oil and Gas Ltd., Vero confirms that the meeting of its shareholders to vote upon matters related to the transaction has been scheduled for November 16, 2012.
Vero Energy Inc. is a publicly traded Canadian energy company involved in the exploration, development and production of oil, natural gas and liquids in Alberta. The Company's shares trade on The TorontoStock Exchange under the symbol "VRO".