In August repairs were completed to the wet gas line that connects Purcell's 24-percent-interest M-25 and 2M-25 wells to the Fort Liard production facility. These repairs enabled stimulation and in-line flow testing of the recently drilled Liard 2M-25 Nahanni well. A five-day flow test was conducted on the 2M-25 well resulting in raw gas flow rates in excess of 25 million cubic feet per day (mmcf/d) with a drawdown of less than 11 percent that was restricted by tubing and the maximum operating pressure of the test equipment. The 2M-25 well is currently shut in for pressure buildup.
Work will begin shortly on the Liard M-25 well that has been shut-in since January 2004. A successful workover of the M-25 well and tie-in of the 2M-25 well, together with upgrades to the common facilities, will result in gross production in early October of approximately 35 mmcf/d of raw gas being added to the current field production (an additional 800 to 900 barrels of oil equivalent per day (boe/d) net to Purcell). The new operator is reviewing existing wells in the field for potential workover candidates to maximize production. The operator is also reviewing three-dimensional seismic data over the Nahanni field to identify additional drilling locations within the pool.
Effective July 1, 2004, Paramount Resources Ltd. was appointed operator of the Fort Liard gas project, having acquired Chevron Canada's interest. Since first production from Fort Liard in May 2000, gross production from the four wells in the gas pool has totaled approximately 120 bcf of raw gas (85 bcf of sales gas).
Purcell Energy is an oil and gas exploration and production company with significant exposure to high-impact full-cycle exploration targeting deep natural gas pools. In recent years, the company has built on the strength of its Fort Liard natural gas discovery in the Northwest Territories. Current production of approximately 5,000 boe/d is derived from 1,200 boe/d at Fort Liard and 3,800 boe/d from other properties, with at least 1,100 boe/d (including Fort Liard) behind pipe.
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