Marquee Energy provided an update on recent operations across its two key oil projects at Michichi and Lloydminster.
Marquee is the most active driller in this emerging light oil play having drilled 10 of more than 30 horizontal wells licensed in the Michichi area since July 2011. To date, Marquee has realized a 100 percent success rate on the 10 (100 percent working interest) horizontal light oil wells drilled into the Banff and Detrital formations. Eight of these wells are currently on production while the remaining two wells are awaiting completion operations and are expected to be on production in February. The first horizontal well of Marquee's three well fourth quarter program averaged more than 200 boed over an initial five day test period and achieved an IP30 of 141 boed with oil and liquids weighting close to 90 percent.
Expansion of the company's 8 million cubic feet per day gas plant at Michichi and the associated gathering system will be complete within the next two weeks. Installation of a 3 mile (5 kilometer) long six inch gas gathering system will allow the company to tie-in existing and future horizontal wells to the new gas plant, which will reduce the amount of gas currently going to a third party facility and result in lower processing costs, improve natural gas liquid recoveries, and reduce future well tie-in costs and on-stream times.
At Lloydminster Marquee successfully drilled ten vertical heavy oil wells in 2012, five of which were drilled and put on production during the fourth quarter. These wells were drilled, completed, equipped with production facilities, and placed on production within three weeks of rig release for under $600,000 per well.
Marquee remains committed to efficiently capitalizing its core oil assets in eastern Alberta while continuing to improve its financial flexibility.
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