Another Great Quarter for Crew! The sale of their non-core and virtually non-producing assets at Attachie for $130 million helped
Crew pay down their Debt from $405.9 million at December 31, 2021 to $152.6 million at September 30,2022. That is $253.3 million of debt reduction. FREAKIN UNBELIEVABLE !
The company is setup for even more success moving forward. What sets them apart is how focused their asset base is and how they control all of their facilities and infrastructure.
Crew has dry gas at Groundbirch. The 5 most recent wells have proven that four different zones are capable of commercial production. The 5 new wells on the 4-17 Pad are flowing at restricted raw gas rates of 8.5 Mmcf per day and the 3 original wells averaged 8.6 Mmcf per day over 6 months.
Those production rates indicate that a single eight well pad at Groundbirch can produce gas at 68 Mmcf per day which is 47 % of Crews total gas production of 145.7 Mmcf per day. OUTSTANDING !
Crew has liquids rich gas at Greater Septimus. 5 wells on the 4-14 pad averaged 633 Bbls per day of condensate and 1.7 Mmcf/day of gas. The other 3 wells on this pad
produced IP240 average wellhead rates of 7,638 mcf per day of natural gas and 416 bbls per day of condensate. That is a cumulative rate of 3581 Bbls per day of condensate and 16.1 Mmcf per day of natural gas.
The production rates of 3581 Bbls per day of condensate from the 8 well 4-14 pad indicate that this pad alone can replace approximately 75% of Crew’s total condensate production of 4731 Bbls per day.
In addition Crew will be placing the 6 well 11-27 pad on production in mid-January 2023. Production rates are expected to be in-line with the 4-14 pad. To handle these new conde volumes Crew is upgrading the Septimus plant’s liquids handling capability from 1000 to 4700 Bbls per day condensate. AMAZING !
Crew has light oil at Tower from conventional drilling. Crew is about to deploy their Extended reach horizontal technology (4000 meter laterals) at the 6 well 15-28 pad which is currently being drilled (Map on Slide 17 October 2022 Presentation the pad location is directly below the Tower bubble). The oil rates from this pad will be off the charts. Light Oil Production for Crew! SO FREAKIN EXCITING !
Lastly the Monias Area. This area is undeveloped and is separated from the Greater Septimus Montney by the Monias Fault (Map on Slide 17 October 2022 Presentation). This part of Crew’s land holdings were not known to be hydrocarbon bearing because of separation caused by the Monias Fault. That has all changed with the drilling and completion of the A14-34 well which flowed 1.2 Mmcf per day of gas and 400 barrels per day of condensate.
Crew has the 2 well 2-4 Pad to the Southwest of the A14-34 well which flowed at rates of 5.1 Mmcf per day gas and 100 Bbls per day of condensate.
Crew has now discovered a large new fairway on their land base with liquid production rates similar to North Septimus and Tower. RUNNING OUT OF ADJECTIVES ! because Crew has so many good things happening.
All in all a tremendous year so far for Crew and so much to look forward to in the coming quarters and decades ahead.
Many thanks to Dale and his Crew from this shareholder.
GLTA
BTO