4 Clearwater Wells online Q1I'm curious to see how the Clearwater Nipisi wells perform. Other companies have had great success in the Clearwater formation.
From pg 4: https://cardinalenergy.ca/wp-content/uploads/2022/03/March-14-2022-Final.pdf
Our Board of Directors has approved a marginal increase in our capital program for 2022. Our initial 2022 budget of $75 million in capital spending and $9 million of abandonment and reclamation spending ("ARO") will be increased by $15 million. Of the increase, approximately $5 million of the additional capital spending will be allocated to strategic Clearwater land acquisitions, a portion of which has been spent in the first quarter, and an additional $10 million will be spent on ARO with an increased focus on surface land reclamation and restoration in Alberta and Saskatchewan. With the increased ARO budget amount and our remaining government grant contributions we expect to spend over $24 million on ARO in 2022 which represents over four times the required regulatory spend.
To date in the first quarter of 2022, we have completed the drilling and completion of eight wells. Two Dunvegan light oil wells were drilled and completed and have commenced production following our type curve expectation. Two Ellerslie multi-leg horizontal wells were drilled and completed in the Brooks area of southern Alberta. The first well has been on production for approximately two weeks at rates double our type curve expectations in the area. The second Ellerslie well is expected to be on stream this week. In addition, Cardinal’s first four Clearwater wells at Nipisi have been drilled and completed and are also expected to commence production this week.