Contact Exploration Inc announces that the first Contact-operated horizontal Montney well at 13-17-63-5
W6 (the "13-17 Well") was placed on production on December 1, 2012. The Company is pleased to report that during the first seven days of production the 13-17 Well averaged 200bbls of wellhead condensate/mmcf natural gas. Contact expects additional liquids recoveries at the third party gas plant to add between 30 and 130bbl/mmcf, depending on whether the gas is processed through the deep cut plant.
On a per production day average basis, the 13-17 Well
flowed gross rates of 750bbl/d condensate and 3.7mmcf/d raw gas during the first week (being
281 bbl/d condensate and 1.4mmcf/d raw gas net to Contact, before payout). Contact notes
that downstream liquids processing bottlenecks have required Contact to temporarily restrict the
productive capacity of the 13-17 Well, as Contact works with downstream plant operators to
manage the substantial condensate volumes from the well. Contact also notes that during this
production restricted period, flowing pressures at the 13-17 Well, being over 20MPa (2,900psi)
at the well head, averaged over three times the line pressure. Contact holds a 37.5% working
interest before payout and a 25% working interest after payout in the 13-17 Well. The Company
advises that although the foregoing initial production rates from the 13-17 Well are very
encouraging, these results may not necessarily be indicative of long-term performance or of
ultimate recovery from the 13-17 Well.
Contact is also pleased to announce that operations to tie-in the second Contact operated
Kakwa Montney well at 14-30-63-5 W6 (the “14-30 Well”) are on schedule. Contact expects
these operations to be finalized and the 14-30 Well to be on production by early January 2013,
subject to processing capacity being available. Contact holds a 25% working interest in the 14-
30 Well as well as in all additional wells to be drilled on the Kakwa joint interest block, going
forward.
Also at Kakwa, Contact expects to spud the third Contact operated Montney well at 3-19-63-5
W6 (the “3-19 Well”) within the next week. The 3-19 Well is a development well, being drilled
between the 13-17 and 14-30 Wells. Drilling operations on the 3-19 Well are scheduled to be
finished by late February 2013, inclusive of a break in drilling operations for the Christmas
holidays.
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