Marquee Drilling Update for July, 17th
July 17, 2013
Over the past 6 months Marquee has been reviewing all facets of the well history of the 11 horizontal wells we drilled at Michichi in addition to the approximately 40 competitor horizontal wells in the area. Our study focussed on drilling program design, completions, production results and costs. We have used the resulting insights to modify, where necessary, our upcoming new drills in 2013.
As previously discussed in our AGM presentation, Marquee is planning to drill 6 horizontal wells at Michichi in the second half of 2013.
Advancements in the upcoming drilling program include:
· All 6 wells will be drilled to accommodate multi-stage fracing but will be initially tested and produced without stimulation. Marquee has experienced strong operational and economic results from unstimulated Detrital and Banff wells. Multi-stage sand fracs typically cost more than $700K at Michichi.
· The first 3 wells from the program have been designed as dual lateral wells. These wells will double reservoir encountered with increased productivity and incremental drilling costs of only $300K/well.
· Four of the wells will be drilled on multi-well pads resulting in significant equipment & tie-in savings.
· At least half of the wells will be tied in to the Marquee gas plant with expected short tie-in times and reduced operating costs.
· Three of the wells will be drilled as dual zone tests with segments of the well bores encountering both Detrital and Banff reservoir. Results of our first dual zone test at 13-29 are discussed in the attached presentation.
Other significant notes concerning the program:
· Average working interest for Marquee is more than 95%
· Three of the wells will test low risk play extension opportunities.
The first well of the program was spud July 4 as a dual lateral, multi-well pad Detrital test and is currently drilling ahead in the second horizontal leg.
*Pasted from Marquee Energy's news releases.*