CEX - news Fairly weak response today on what is an excellent BCP / MMSCF (Barrels Condensate Per) yield. 55 BCPMMSCF is considered 'rich'... this is around 180 BCPMMSCF and that is very, very rich (ultra rich as described).
Looks like all the quick upside happened before the news was released !! Go figure ! :)
The stock should have shot up 15 - 25 % on this result.
SD
Contact's 14-30 well flows at 1,803 boe/d
2012-11-05 08:12 ET - News Release
Mr. Steve Harding reports
CONTACT EXPLORATION CONFIRMS REPEATABILITY OF KAKWA LIQUIDS-RICH MONTNEY DEVELOPMENT WITH SECOND SUCCESSFUL WELL
Contact Exploration Inc.'s second Contact-operated horizontal Montney well (14-30 well) has been successfully completed with a 14-stage water-based nitrogen foam frac. The well was flowed for 96 hours against anticipated gathering system pressure of approximately 1,100 pounds per square inch. During the final 24 hours of flowback the well averaged gross production rates of 974 barrels per day of condensate and 4.97 million cubic feet per day of gas, being 1,803 barrels of oil equivalent combined (244 barrels per day and 1,243,000 cubic feet per day, or 450 boe/d combined, net to Contact). An additional four-hour flow test was subsequently conducted to provide insight into the free-flowing initial deliverability of the well, against a final wellhead pressure of 360 pounds per square inch, which test resulted in gross rates of 1,324 b/d condensate and 6,423,000 cubic feet per day of gas, being 2,394 boe/d combined. The 14-30 well was drilled ahead of schedule and under budget, and completion operations have remained on budget.
The successful drilling and completion of the 14-30 well confirm that Contact's Kakwa lands are in the heart of the liquids-rich Montney trend, validating the repeatability of this prolific play. Steve Harding, president and chief executive officer of Contact, commented: "Condensate rates from the 14-30 well are right in line with our expectations given that both the horizontal length of 14-30 well and its 24-hour production test volumes are approximately 85 per cent of the horizontal length and test rates from our first well at 13-17. However, the 14-30 well has surpassed our expectations for overall condensate production, having flowed more condensate in its 96-hour production test than did the 13-17 well and demonstrating free-flowing wellhead condensate yields of 200 barrels per million cubic feet. The condensate yields from the 14-30 well will surely enhance the economic returns from this already strongly commercial project."
The 14-30 well will now be equipped for production and Contact anticipates pipeline connection to the company's previously built mainline to be finalized by early 2013. The 14-30 well was designed to allow for the vertical completion and testing of an uphole Montney target. However, given the success of the horizontal test and the potential risk of compromising wellbore integrity, Contact and its partners have elected not to complete this uphole Montney zone at this time. Contact continues to have confidence in this interval and will plan to test the zone in a future well. The company is currently permitting a new well from the same surface location as 14-30, and is expecting to spud this well by January, 2013.
Contact is also pleased to announce that it has acquired at recent Crown land sales, an additional eight 100-per-cent-working-interest sections. These newly acquired lands are on trend with and nearby the company's original Kakwa 16-section block that it operates at a 25-per-cent working interest. Furthermore, Contact and its partners have acquired a 0.75-section immediately adjacent to the section upon which the 14-30 well was drilled. With these acquisitions, Contact has added a total of 8.18 net sections of prospective Montney acreage for an average cost of less than $200 per hectare, such that the company now holds 12.18 net sections prospective for Montney development.
The company advises that although the initial rates from the 14-30 well are very encouraging, production test results are not necessarily indicative of long-term performance or of ultimate recovery from the 14-30 well.
We seek Safe Harbor.