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Chinook Energy Inc. Common CNKEF



GREY:CNKEF - Post by User

Post by Miner1967on Apr 02, 2017 2:42pm
315 Views
Post# 26065106

CKE restricts flow rates - compressor is filled to capacity

CKE restricts flow rates - compressor is filled to capacity
The three recently-completed Montney wells exceeded the company's expectations. To realize how unexpectedly prolific they are, see slide 9 from the latest presentation. Due to their high flow rates that range from 1,100 boepd to 1,400 boepd, the compressor was filled to capacity(!), so the company had to restrict their flow rates!
This is why the company announced that these three wells were producing at restricted gross rates in late March. The company has run out of capacity! I quote from the presentation:
"With 9 (7.63 net) wells on production in mid-March at partially restricted rates, the 25mmcf/d compressor built in 2016 is filled to capacity".

This is also the reason why the company stated a few days ago that their $40 million capital program for 2017 includes the expansion of their facility at Birley/Umbach from 25 mmcf/d to 50 mmcf/d.
See slide 9 in the new presentation, the capacity restrictions are clearly written there:


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