RE: RE: Heavy Oil Price The price for Western Canada Select heavy oil is still on the up swing,currently $84 bbl.
Some disappointing news from Tuscany.
"In first-quarter 2012, Tuscany completed a three-well drilling program at Macklin, Sask., and placed the wells on production at the end of the quarter. The wells produced at an average rate of 75 barrels of oil per day (41 barrels of oil per day net to Tuscany) during second-quarter 2012 and have subsequently declined to 35 barrels of oil per day (20 barrels of oil per day net to Tuscany). This increased the number of horizontal heavy oil wells that the company has drilled in Saskatchewan to 18 wells in total, with 12 wells at Evesham and six wells at Macklin.
During second-quarter 2012, Tuscany commenced a program to increase the water-handling facilities and disposal capacity at both Evesham and Macklin. This included deepening and recompleting existing wells for increased disposal capacity, and installing pipelines to handle increased volumes of water.
The company plans to significantly increase the total fluid production from producing wells, which it believes will increase total oil production.
Additional drilling in the area will be delayed until the increased water-handling capacity has been completed."
The first 3 Macklin wells which were drilled 3-6 months before the ones mentioned averaged around 50 boed
during Q2.The new wells must be producing more water than they can handle.