Berkana Energy's average field production in December, 2007 was 4,028 boe/d which exceeds the Company's most recent exit rate guidance (November 23, 2007) of 3,400 to 3,600 boe/d. Ten wells, four of which have produced for extended times, at Red Earth, Kaybob and Rimbey are currently shut-in awaiting tie-in, additional processing capacity or regulatory approvals and provide additional productive capacity of 400-600 boe/d.
This additional productive capacity will more than cover anticipated production declines over the next six to twelve months. Six new wells which have been drilled in the fourth quarter (two of these wells have been flow tested with anticipated initial production rates of over 250 boe/d) form a solid foundation for further production growth in 2008.
Based on field estimates of production, Berkana calculates fourth quarter production of approximately 3,470 boe/d with average production of approximately 2,820 boe/d for calendar 2007. Fourth quarter production was consistent with the most recent market guidance and average 2007 production has slightly exceeded Berkana's market guidance of between 2,700 to 2,800 boe/d.
Berkana is a highly focused company, currently producing over 95% of its sales volumes from three core properties in Alberta at Rimbey, Kaybob and Red Earth. Berkana's corporate production mix is 75% natural gas and 25% oil and liquids.
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