Year-End Production Exceeded by Vero Energy
Vero Energy Inc. reported that year-end exit production based on field estimates is approximately 5,700 boed (79% natural gas), which exceeds the high end of our most recent year end exit production guidance. In the quarter, Vero participated in the drilling of 8 (6.3 net) wells with a success rate of 100% including four new pool discoveries. Currently 7 (4.3 net) wells are awaiting either completion or tie-in.
Highlights for the fourth quarter include the completion of Vero's Edson 100% working interest, 20 MMCFD, expandable gas processing facility. The facility was running in early December but was delayed in getting to full operational capacity until the last week of December due to third party issues relating to the tie-in to the main sales gas transmission system. The new facility eliminates restrictions on production that were caused by high and increasing line pressures and will allow for continued growth from Vero's drilling program in the area. In Edson, 6 (4.3 net) wells were drilled in the quarter including 1 (0.7 net) horizontal Rock Creek well.
Vero received regulatory approval for the down-spacing of more land in the Edson area. There are now 35 sections approved for the drilling of two wells per pool, per section and an additional 13 sections are awaiting approval. Edson currently has over 60 drilling locations with the current potential to drill up to 50% of these as horizontal wells. Vero acquired six sections of crown land in the quarter continuing on the strategy of acquiring high-grade, "ready to drill sections". At Corbett 1 (1.0 net) well was drilled in the quarter. This area continues to grow and now has production over 850 boed (45% oil) based on field estimates. In addition, the Company increased capacity and reduced the field suction pressure by optimizing compression at the 100% owned facility.
The Company is in the process of optimizing and leveling out production in these fields with the addition of the new facilities along with new wells recently brought on production.