Delphi Energy's Bigstone well flowing at 12.5 mmcf/d 2012-01-19 09:15 ET - News Release Mr. David Reid reports DELPHI ENERGY COMPLETES FIRST BIGSTONE MONTNEY WELL Delphi Energy Corp. has provided the following operations update. At Bigstone East, the company's first horizontal well targeting the Montney formation (100-per-cent working interest) with a surface location of 1-19-60-22W5M, has been successfully completed and flow tested at an average rate of 12.5 million cubic feet per day ("mmcf/d") over the final 24 hours of the four day flow period. The well was also producing approximately 770 barrels per day ("bbls/d") of condensate at the end of the test, although 100 percent of the frac fluid hadn't been recovered. Shallow-cut plant recoveries of natural gas liquids ("NGL's") are expected to yield an additional 30 to 35 bbls/mmcf. Completion operations consisted of a 20 stage oil-based frac program placed over the 2,760 metre "extended-reach" horizontal section of the well after successfully drilling the well to a total measured depth of 5,618 metres. The drilling operation was completed as planned with the full length of the horizontal section encountering the anticipated reservoir quality rock. The extended-reach horizontal section is up to twice as long as earlier horizontal wells in the area and is designed to reduce the number of wells required for full development by up to 50 percent with total project cost savings of approximately 35 percent. The Delphi Bigstone East 1-19 well is immediately offsetting a competitor's well with a 1,254 metre horizontal length and reported test rates of approximately 4.3 mmcf/d of natural gas and 295 bbls/d of condensate. In the Fir area, located approximately three miles (five kilometres) to the south of Bigstone East, nine horizontal wells have now been drilled. Test rates reported to date range from 3.5 mmcf/d of natural gas and 225 bbls/d of condensate, from a well with a 1,200 metre horizontal length, to a high of 15 mmcf/d of natural gas and 750 bbls/d of condensate, from a well with over 2,500 metres of horizontal length. Reported drilling success in the area continues to validate Delphi's interpretation of a large contiguous liquids-rich natural gas deposit within the Montney formation in the greater Bigstone/Fir area. A second Montney well at 5-14-60-23W5M, located three miles (five kilometres) southwest of the 1-19 well has commenced drilling and is anticipated to reach a total measured depth of 5,800 metres in approximately four weeks. A similar frac program is expected to be undertaken as part of the completion operations on this well. The Company has an inventory of approximately 100 horizontal Montney locations identified on its 45 gross (41.5 net) sections of land in Bigstone. Other emerging light oil and liquids-rich natural gas plays in the Nordegg and Duvernay formations being drilled by industry at Bigstone offer additional potential on Company lands. Delphi expects to commence construction in February on its 100 percent owned compression and field gathering infrastructure with initial capacity of 30 mmcf/d. Production from Delphi's Montney wells at Bigstone East is expected to commence in April, with start-up of these facilities. In addition, the Company has recently closed the disposition of its non-operated interests in the Sinclair Doe Creek Unit 1 and minor offsetting lands for $12.0 million. Production associated with the disposition was approximately 160 boe/d (67 percent light oil). Proceeds from the sale will be used to fund the ongoing Bigstone Montney development. Also, Delphi is pleased to report it has exceeded its fourth quarter 2011 production target of 9,200 boe/d with record production of 9,315 boe/d (29 percent light oil and NGL's). |