Manitok Energy provided an update on operations and drilling at its Stolberg well in Western Canada.
In the last week of December 2012, under the significant constraints of temporary facilities and industry regulations restricting the production rate on two of Manitok's wells located at the northern end of the Stolberg trend (wells six and seven from the 2012 drilling program). Manitok's production averaged 3,860 barrels of oil per day (bopd) with 1,638 bopd of light oil and condensate, which is about 42 percent of total production. During January the wells at the northern end of the Stolberg trend transitioned from temporary facilities to a permanent configuration. With industry regulations restricting the production rate on the same two wells, current production is approximately 4,100 bopd with 2,200 barrels per day of light oil and condensate, which is about 54 percent of total production.
Wells at the southern end of the Stolberg trend will be shut-in for significant amounts of time over the next two-to-three weeks as Manitok transitions from temporary to permanent facilities. Corporate production will likely be reduced by approximately 500 to 600 bopd during this period. Once the transition has been completed, Manitok anticipates returning to current production levels in early February.
Manitok completed drilling operations on its tenth well at Stolberg in January 2013. Due to the drilling lease being too small to accommodate both a drilling rig and a completion rig at the same time, Manitok conducted a brief flow test from the drilling rig, rather than a longer duration flow test using a completion rig. There was a significant flow of 44 degrees API oil during the operation which provided Manitok with enough information to be confident to spud the 11th well from the same drilling lease. The brief test suggested well production capability in line with Manitok's expectations and similar to some of the horizontal wells drilled by Manitok in the Stolberg trend to date. Since then, Manitok has set surface casing on the 11th well and drilling operations are continuing. Continuous flow testing of these wells will commence following the termination of drilling operations on the lease.
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