RE: Sarcee update
Sarcee completion and possible production impact
Completion operations of the Sarcee 12-13 well commenced on Oct. 26, 2005. The operation includes an acid stimulation treatment, which is typically required to establish commercial productivity in these types of wells. The total completion and production testing operation is expected to take up to four weeks.
C1 estimates that the potential productivity of this well could be up to 3.2 million cubic feet per day of natural gas and 210 barrels per day of natural gas liquids (740 barrels of oil equivalent per day in total) net to C1's 55-per-cent working interest. This estimate is based on analogous producing wells in the region. If successful, C1 will attempt to secure third party processing capacity as soon as possible. Discussions to date with third party operators suggest that it could possibly be mid-2006 before firm processing capacity is available. The well may be produced on an interruptible basis prior to that time. The inclusion of production from this well could cause C1 to meet or exceed its earlier production target of 1,900 barrels of oil equivalent per day.