Hyperion announced initial production results from its operated 2011 Cardium light oil drilling program. Initial results have exceeded the Company's original estimates for wells completed and on production. At Garrington two gross (2 net) wells are now on production and at Buck Lake one gross (0.6 net) well is currently being tested. Hyperion expects to execute its remaining 2011 capital program as forecasted in its 2011 capital budget.
Hyperion initiated its operated, Cardium light oil development on schedule in early July with the drilling of two gross (2 net) wells. These wells were drilled back to back off a common drilling pad and then completed with two different stimulation techniques. The first well, 9-27, was stimulated with 20 fracs at 20 tonnes per frac using slick water. After installing a bottom hole pump, the well achieved a production rate of 744 boe/d (89% liquids) over the first 14 days of production, compared to an internal area type well of 194 boe/d (84% liquids) for the first 30 days. The second well, 8-27, was stimulated with 20 fracs at 20 tonnes per frac using a water-based foam system. The well is currently flowing (with a bottom hole pump to be installed at a later date) and achieved a production rate of 413 boe/d (86% liquids) over the first 7 days of production compared to an internal area type well of 194 boe/d (84% liquids) for the first 30 days. The decision to conduct one water-based foam fracture stimulation and one slick water stimulation was intended to evaluate and identify the ideal stimulation method and optimize longer term production rates. Based on the initial production rates, both wells are expected to achieve, if not outperform Hyperion's 30 day average initial production type curve rate of 194 boe/d (84% liquids). The 9-27 well, which was fracked with slick water, has significantly outperformed Hyperion's initial production expectations and outperformed on a relative basis to the water-based foam stimulation. Based on these results, Hyperion expects to use slick water fracs for future well stimulation at Garrington.
Hyperion has 18 additional net drilling locations at Garrington, including 7 Cardium light oil and 11 locations targeting Glauconite light oil, Elkton liquids rich gas, and Ellerslie light oil.
Included in the 2011 capital program is the drilling of two gross (1.2 net) Cardium horizontal light oil wells in the Buck Lake area. The first well at Buck Lake, 4-16, has been drilled and fracture stimulated with 18 fracs at 20 tonnes per frac using slick water. The well has produced an average of 624 boe/d (64% oil) over the first 3 days of a flow test. Based on these results, the well has the potential to meet or exceed Hyperion's internal 30 day, average initial production type curve of 175 boe/d (92% oil). Drilling of the Company's second Buck Lake Cardium horizontal light oil well, 5-16 (0.6 net), is expected to commence in Q4 2011. Further production updates will be provided as both 4-16 and 5-16 wells produce at reliable and indicative rates. Hyperion has 12 additional net Cardium horizontal light oil drilling locations at Buck Lake identified to-date.
Hyperion's 2011 capital budget also includes the drilling of two, 100% working interest, Cardium horizontal light oil wells at Pembina. The first of these wells, 4-24, is currently being drilled. The second well, 5-24, will be drilled immediately following 4-24. Similar to the Garrington wells, these will be drilled from a common pad. Hyperion also expects to stimulate each of these wells with 20 fracs at 20 tonnes per frac, back to back, using slick water.
Further updates will be provided as the 4-24 and 5-24 wells produce at reliable and indicative rates.
Early in 2011, Hyperion participated in the drilling and slick water stimulation of 2 gross (0.8 net) Cardium horizontal light oil wells on its Pembina lands. These wells went on production in late March 2011 and have each produced in excess of 36,000 bbls (gross) of oil. Both wells continue to produce at approximately 190 boe/d gross, of which 83% of production is light oil, seven months after they were placed on production. These production rates continue to be above Hyperion's type curve for the area which at month 7, is 158 boe/d (92% oil). For reference, the 30 day average initial production type curve rate is 275 boe/d (92% oil).
Hyperion has over 7 additional net Cardium locations at Pembina identified to-date.
Hyperion remains focussed on per share growth through the execution of the 2011 capital budget. The Company continues to execute on schedule, with 6 gross (5.2 net) Cardium horizontal light oil wells to be drilled in the second half of 2011.
Hyperion commenced operations in July 2010 with the recapitalization of Triple 8 Energy Ltd ("Triple 8"). Hyperion has completed four acquisitions since the recapitalization, adding production, reserves, and significant future upside to the corporate portfolio. The acquired assets provide the platform to execute Hyperion's strategy of providing high growth through acquisitions which lead to lower risk, scalable and repeatable light oil development drilling.
Most Popular Articles
From the Career Center
Jobs that may interest you