Citadel Drilling Ltd. and Seven Generations Energy Ltd. are pleased to announce that Citadelís Rig 1 has commenced drilling on 7Gís Kakwa River Project targeting the Montney formation. This development is an important step forward for both companies, providing Citadel with the opportunity to further advance its technology and allowing 7G to more effectively develop its tight liquids rich gas resource.
Rig 1 is Citadelís first of a fleet of modern Technically Advanced AC Triple (TA≤CT) land-based drilling rigs. Designed specifically for drilling deep, land-based pad wells, ideally equipped for 7Gís Triassic Montney resource play, the TA≤CT rigs have been designed to optimize drilling programs and reduce expensive downtime and labor costs for clients. In addition, the rig addresses the ongoing needs of oil and gas producers that require safe, programmable, efficient rigs with high pressure drilling capabilities and increased horsepower pumping capacity. To operate this advanced drilling rig, Citadel has recruited a crew of rig technicians that in aggregate hold approximately 135 years of prior alternating current (AC) deep drilling experience.
7Gís Kakwa River Project is presently dominated by development of the tight, liquids rich Montney resource situated at a depth of 2,800 to over 4,000 metres below the surface. 7G is presently developing the Montney from multi-well surface pads, with wells having up to 3,000 metres of completed horizontal lateral length, and strives to identify and advance technologies to cost effectively enable even greater lateral reach. The addition of Citadelís Rig 1 brings 7Gís contracted fleet to 9 rigs in total.
Citadelís CEO, Dan Hoffarth, said, ď7G is a perfect fit as our first customer for the new TA≤CT series rigs. The rig is designed for the technical challenges presented by 7Gís Montney. Further, with its innovative corporate culture, 7G is the ideal partner to work with us to prove and advance our products.Ē
Barry Hucik, 7Gís Vice President, Drilling, said, ďWe are pleased to welcome Citadel Rig 1 to our fleet. We anticipate that Rig 1 will be a significant step along the path to our objective of reducing costs while extending horizontal reach, enabling us to develop more resource with less surface land disturbance. We also look forward to welcoming Citadelís Rig 2 and Rig 3 to our fleet as we ramp up our activity this fall and into 2015.