Twin Butte Executes Another Succesful Drilling Program in 2007 Q4
During the fourth quarter of 2007, Twin Butte Energy executed another successful drilling program allowing the Company to achieve its previously announced exit guidance of over 2,100 BOE/d. Fourth quarter production averaged approximately 2,050 BOE/d representing a production increase of 88% from the Q4 2006 average of 1089 BOE/d. During the fourth quarter the Company successfully drilled 5 gross (4.0 net) wells and in total Twin Butte drilled 18 gross (14.8 net) wells in 2007 with a 100% success rate.
To date in Q1 2008 the Company has drilled and cased one well in the Thunder area and is preparing for a multi well program in its Plains operating area and its first horizontal well at Jayar both of which are planned to commence in February. The Plains program includes two 100% WI oil development wells at Bulwark, as well as a new oil facility, and the first two 100% WI horizontal wells at Provost in a potential multi well program.
At Jayar the Company will be drilling the first high impact horizontal well in the Dunvegan light oil pool utilizing the Packers Plus multi frac technology. The Jayar Dunvegan pool is an 85.5% WI, low permeability reservoir that has been developed to date utilizing vertical drilling and completion technology. Technical data indicates that recent advancements in horizontal drilling and completion techniques utilized in the Bakken tight oil pool in Saskatchewan and the Montney tight gas pool in British Columbia are applicable to the Dunvegan zone at Jayar. Successful application of this technology presents significant upside potential to the Company with vertical well production to date representing less than 2 million barrels out of an estimated 40 million barrels in place.
Additionally in Q1, the Company will be completing a Fort St. John area gas well that was cased in December. The well offsets existing infrastructure and if successful represents the first well in a multi-well development program. Finally, the Company anticipates the tie in of one non-operated well at Tony Creek during the quarter.
The Company continues to execute managements focused business strategy, closing the acquisition of E4 Energy Inc. on February 8, 2008. Post this acquisition, the combined asset base provides additional critical mass and operational momentum to Twin Butte shareholders creating a financially strong company with greater than 3,000 BOE/d of production, 8.9 million BOE of 2P reserves, a prospect inventory of over 75 locations, a significant tax pool base and 143,000 net undeveloped acres of land.