Tuktu Resources Ltd. (TSXV: TUK) ("Tuktu" or the "Company") is pleased to provide an operational update on its discovery well.
On September 16, 2024, the Company announced initial production rates on its conventional light oil discovery in the southern Alberta Deep basin. In that press release, a rate of 408 bbl/d oil was indicated as an average calendar day rate from August 17, 2024 through to September 15, 2024 on the discovery well. Tuktu has an 80% working interest in this well.
Following the Company's last announcement, from September 15, 2024 to October 8, 2024, the well continued its strong performance, producing an average of 394 bbl/d with less than 1% water cut and about 3% of associated gas (on a BOE basis). During the last 12 days of production, well drawdown decreased from about 18% to 0% suggesting that well capability has increased over time. The Company maintains that the production capability of the well appears to be pump constrained. The lack of drawdown in the well after two months of production underscores the high deliverability of the new conventional reservoir (i.e., excellent reservoir pressure and permeability). The well ranks amongst the top 1% of average initial 60 calendar-day production rates in the Alberta Deep Basin for vertical wells over the past twenty-five years, based on publicly available production data.
The well is temporarily shut in, as the Company follows the normal course of the Alberta Energy Regulator's O-38 application, a process which ensures Good Production Practices ("GPP") concerning reservoir energy conservation. As of October 22, 2024, the Company was approved for GPP, which allows unrestricted production following the retirement of "overproduced volumes", and the Company anticipates well startup on or about December 1, 2024.
