Reece Energy Continues Canadian Drilling Efforts, Adds to Bakken Lands
Reece Energy Exploration Corp. provides the following operations update for the first quarter of 2008. Reece's 2008 drilling program has commenced with wells being drilled in the light oil plays at Dodsland and Crystal Hill. In addition, more land has been acquired, and drilling operations are scheduled to commence in May, 2008 in the prospective Bakken play in South East Saskatchewan.
As previously announced, Reece drilled and completed a multi-stage fractured horizontal well in the Dodsland area during the fourth quarter of 2007. This was the first well of its kind in the area. The well has been producing steadily in stabilized conditions throughout the first quarter of 2008. The well had an initial production rate of more than 115 bbl/d in January, 2008, and produced at an average rate in March in excess of 65 bbl of light oil per day.
Due to the success of the first well, Reece has finished drilling the second well in the field. The fracture string has been placed and the well is awaiting the staged fracture, which will take place immediately after break-up. Intermediate casing has been set on a third well, and the rig has been shut down for break-up. The horizontal section of the third well will be finished immediately after break-up. Reece anticipates that the rig will be moved to the fourth Viking location in the series after completing the third well. Reece plans to drill a minimum of six (6 net) wells in this 100% working interest play in 2008. All successful wells will be tied into Reece's 100% owned and operated light oil battery located nearby.
Two wells (net 0.66) were drilled in March of this year at Crystal Hills in south east Saskatchewan. The wells have been cased for production in the Souris Valley formation. The first well swab tested at a rate of 130 bbl/d (gross) of light oil and 130 bbl/d (gross) of water after acidization. The well will be put on production and is expected to produce at approximately 50% of the swab rate, resulting in an estimated 22 bbl/d (net) of light oil to Reece. The second well had oil shows during drilling and completion, and is being evaluated prior to acidizing. These wells will be tied in to existing joint venture facilities. Three more wells (1 net) are anticipated to be drilled on this property before the end of the year.
Reece continues to add to its portfolio of Bakken prospective lands in south east Saskatchewan. The lands currently under lease in this play now total more than 40 (20 net) sections or approximately 26,000 (13,000 net) acres. Reece anticipates that operations to evaluate this land will commence in early May, 2008, and the previously announced joint venture between Aldon Oils Ltd. and Reece will consecutively drill three (1.5 net) horizontal Bakken wells to further prove-up the Bakken potential. Further development will take place as success dictates. It is anticipated that a total of 10 (net five) Bakken wells will be drilled on Reece's Bakken properties in 2008.
- Penn West Energy Trust Completes Acquisition of Reece Energy (May 01)
- Reece Drills Deep at Saskatchewan's Bakken Wells (Nov 03)
- Reece Drills 14 Wells in 3Q (Oct 23)