Enterra Updates on North American Drilling Ops
Enterra Energy provided an operations update on its Cardium play in Alberta, and its Circus Viola and Hunton plays in Oklahoma and other developments.
In mid-March, the first of two planned 2010 Cardium oil well tests in the Lochend area of Alberta was spudded. We anticipate that drilling will be completed on the first well in April, to be followed by a multi-stage fracture stimulation and test program. Preliminary results will be determined by the middle of the second quarter. Through our ongoing land acquisition program, Enterra's Cardium land position now exceeds 7,000 net acres of highly prospective acreage, with a total of more than 40 prospective oil well locations.
In Oklahoma, the drilling of our first two wells on the Circus Viola oil play in Jefferson County has been completed. Both wells reached target depth and proceeded to successful horizontal legs in the lower Viola section. Both wells encountered substantial indications of oil and gas throughout the Viola section which was highly fractured. The first well swab tested oil at low rates. The second well is drilled, but untested awaiting improved ground conditions. Enterra's plan is to use multi-stage fracture stimulation to improve productivity in the oil zones, and these completions are anticipated to be performed in the next several weeks with results during the second quarter.
In its key liquids-rich Hunton resource play, Enterra is initiating its 2010 drilling program in early June with a single rig which will drill between four and six dual-leg horizontal wells over the course of several months. These wells are on high working interest lands and will produce into existing water disposal facilities. Peak production from these liquids-rich natural gas wells is anticipated to occur over the winter season and into 2011.
We will also be initiating several drilling programs in the second quarter in our core areas. This activity will include horizontal drilling in east Alberta in the Dina and Pekisko formations and vertical drilling in the Sparky formation in Saskatchewan. These wells are all targeting medium and heavy oil production near to our existing production.
In early March, Enterra completed the acquisition of approximately 470 boepd of natural gas and condensate production along with a working interest in a gas processing plant in west central Alberta. The addition of excess processing plant capacity will allow the re-activation of our Ricinus gas well without the burden of midstream processing fees. The Ricinus well is capable of producing 450 boepd to Enterra's interest, but was shut in for economic reasons in mid-2009 with the previous midstream fees a major contributor to this decision