Gear has drilled, completed and brought online three heavy oil
wells so far post spring break-up. Two of these three wells are
testing a new area for Gear at Soda Lake where offset operators
have had good success targeting the Upper Mannville McLaren
Formation with single leg lined horizontal wells. The other drill was
a Cummings multi-lateral that continues our development in the
Cummings J pool in Wildmere. The initial production results from
these wells look quite promising as all three are currently producing
above expectations at more than 400 barrels of oil per day
combined.
Gear is also planning a two well program
at Celtic targeting the same McLaren sand package as was
successfully drilled in Soda Lake. Pending success, the Soda Lake
and Celtic projects would prove up substantial inventory that could
be a major component of the 2024 and future capital programs in
areas that have minimal to no reserves currently booked.
Along with recent drilling activity, Gear was also active acquiring
7.5 sections of oilsands leases in the Cold Lake region of Alberta.
As mentioned in previous corporate updates, we believe there are
multiple stacked prospective pay zones over the majority of the
acreage with competitor offsets de-risking a number of them. In
total Gear has identified six potential target zones which have the
potential to contain large undeveloped oil in place. Evaluation of
these blocks is ongoing, and we plan to initiate capital activity here
starting in 2024.