May 22, 2012 09:00 ET
Delphi Energy Commences Production at Its Bigstone East Montney Project
CALGARY, ALBERTA--(Marketwire - May 22, 2012) - Delphi Energy Corp. (TSX:DEE) ("Delphi" or the "Company") is pleased to provide the following operations update.
At Bigstone East, liquids-rich Montney production began flowing on May 13, 2012 through Delphi's recently completed 30 million cubic feet per day ("mmcf/d") compression and dehydration facility after receiving final EUB permitting. Commissioning and start-up of the $16 million facility and field gathering infrastructure progressed as planned over the first week of operation, with production volumes from the Company's two wells reaching a combined gross target rate of 12 mmcf/d and 660 barrels per day ("bbls/d") of wellhead condensate on May 20, 2012.
Production from the Company's first Montney horizontal well at Bigstone East (100 percent working interest) with a surface location of 1-19-60-22 W5M has been progressively increased since May 13, 2012 to a rate of 6.3 mmcf/d of raw natural gas and 330 bbls/d of wellhead condensate on May 20, 2012. With a shallow-cut gas plant natural gas liquids ("NGL's") yield estimated at 32 bbls/mmcf, the total liquids yield is currently 84 bbls/mmcf with 70 percent being plant and wellhead condensate. Since recovering 100 percent of the frac oil six days ago the well has produced at an average rate of 5.9 mmcf/d and 425 bbls/d of wellhead condensate.
Production from the second Bigstone East Montney well (75 percent working interest), with its surface location at 5-14-60-23 W5M, three miles (five kilometres) south west of the first well, has also been progressively increased since May 16, 2012 to a rate of 5.6 mmcf/d of raw natural gas and 330 bbls/d of wellhead condensate on May 20, 2012. With a shallow-cut gas plant NGL's yield estimated at 32 bbls/mmcf, the total liquids yield is currently 90 bbls/mmcf with 72 percent being plant and wellhead condensate. This well has recovered 84 percent of its frac oil.
The Company plans to produce the wells at variable rates and pressures over the next few months to evaluate and optimize production rates and wellhead condensate yields.
A third horizontal well (100 percent working interest) with its surface location also located at 5-14-60-23 W5M, has been rig released after reaching a planned total depth of 5,119 metres with 2,238 metres of horizontal hole successfully drilled. Completion operations of this third Bigstone East well will commence after spring break-up.
The new facility and infrastructure provides Delphi with the capacity to fully develop the existing Bigstone East land base and generate processing revenue from excess capacity. The facility has been designed to be readily expanded in 15 mmcf/d increments to handle increased Company and third party volumes. Delphi has also commenced a feasibility study to integrate this new facility with its ownership in the existing 80 mmcf/d sweet natural gas processing facility to create the lowest possible cost structure and best NGL's recovery efficiencies for the Company.