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Chinook Energy Inc. Common CNKEF



GREY:CNKEF - Post by User

Comment by George98on Apr 05, 2017 11:46am
189 Views
Post# 26079759

RE:CKE restricts flow rates - compressor is filled to capacity

RE:CKE restricts flow rates - compressor is filled to capacity
Miner1967 wrote:
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 these high UNRESTRICTED 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:



Compare now the NEW CKE's RESTRICTED results from the last three Montney wells due to capacity restrictions that range from 690 boepd to 774 boepd with 150 bbls Free Condensate per day

with Leucrotta's (LXE) UNRESTRICTED results (IP-7) from the Lower Turbidite play that has been heavily touted by some "analysts" over the last months:



713 boepd (condensate unknown)

371 boepd (condensate unknown)

472 boepd (condensate unknown)

550 boepd (condensate unknown)



On top of that, LXE's results at Doe from Upper Montney are significantly lower than offset operators, see below:


https://www.leucrotta.ca/news/?id=2154314



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