Contact Issues Update on Stoney Creek Workover
Contact Exploration Inc. on Monday provided an update on its 30-well retesting and workover program for the Stoney Creek field, which is located onshore New Brunswick.
To date, Contact has completed initial retesting of 24 gas wells with the eight most productive wells having a combined deliverability in excess of 1mmcfd. Pressure surveys and electric logs have been run on the majority of the wells. With this information we will be able to determine the reserve potential from the existing zones and identify zones for future recompletion potential. Additional gas wells may be tested over the next year to evaluate their potential. Contact's objective is to establish a long term strategy to market this gas through a local marketing network.
In addition, Contact has swab tested three old oil wells that produced oil inflow rates from 10-25 bopd. Since these wells are already in place, minimal capital is required to put them on production. These wells will be production tested over the next 3-6 months. Based on the stabilized production rates, as many as 12 more old oil wells could be retested and placed on production. Pressure surveys taken in the oil producing region of the field have shown that the average reservoir pressure is twice that which was previously reported. This higher reservoir pressure will positively impact our ability to recover additional oil from the field.
Contact is aggressively developing the Stoney Creek field to deliver incremental production from this well known field and to revitalize the field for commercial production. We anticipate oil production revenue by year-end. In addition to the work-over program, other exploration activity in the Stoney Creek area which is currently underway includes the completion and production of two horizontal wells drilled within the Stoney Creek Field, a three well re-entry program which includes a cased gas well that was shut in with very encouraging initial test results and the interpretation of a recently completed 100km seismic program designed to identify untested zones south of the South Stoney Creek field. To date, Contact has invested in excess of $8 million in the Stoney Creek field and surrounding area including seismic, drilling, completions, re-testing and equipping.
Contact will continue to report further results upon the completion of further testing. While it is too early to project long-term production rates from the work-over program, Contact is very pleased with the initial test results to date.
Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore exploration. Contact's land claims and holdings are located in close proximity to the largest consumption markets in North American with pipeline and refinery infrastructure in place.
Contact has interests in approximately 1.5 million acres onshore Nova Scotia including its 25% working interest in the developing Coal Bed Methane play at Cumberland, approximately 160,000 acres onshore West Newfoundland and 165,000 acres onshore New Brunswick, which includes the Stoney Creek Field.
- Contact Updates on Seismic Acquisition, Shale Gas Prospect (Sep 16)
- Contact Exploration Spuds New Development Well at Stoney Creek Field (Nov 24)
- Contact's Canadian Reserves Estimated at Over 1MM Barrels (Jul 23)