Nextraction has closed the Provost-Viking Oil Joint Venture acquisition with Magnum of 3.25 sections of land in the Provost Field of eastern Alberta. The field currently produces 30 barrels of sweet light crude oil per day and the Company believes the property holds significant upside potential through the re-completion of existing wellbores and the drilling of new horizontal wells.
Mark S. Dolar, President and CEO of Nextraction, reported, "This acquisition is another Company landmark which highlights our strategy to find projects on known plays which we have identified to hold significant growth opportunities. We are adding a commercially productive oil property to our portfolio, which already includes commercial gas production and considerable gas reserves."
Dolar added, "We believe, using our in-house expertise, that we have the opportunity to add 10-15 horizontal oil wells in this defined pool. The Viking 'A' sand is known for porosity values of approximately 20% and two vertical wells on the property have already produced over 240,000 barrels of oil each. Properly designed horizontal completions should greatly increase production volumes. We will progress quickly towards re-completing wells on the leasehold and the drilling of two horizontal wells this summer."
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