Enterra Acquires Acreage in Alberta's Cardium Oil Play
Enterra Energy Trust has accumulated almost 4,000 net acres in a new Cardium oil play in west central Alberta. Beginning in 2010 Enterra anticipates a multi-year drilling program of 10 to 16 horizontal wells and will utilize multi-stage fracture stimulation technology to maximize resource recovery potential of light gravity sweet crude oil from this play. In the Cardium formation in Alberta, industry results using horizontal drilling and multi-stage fracture technology have been encouraging, with reported initial oil production rates in excess of 170 bbls/day and internal expectations are for gross reserves 170,000 bbl per well. It is anticipated that the inventory of drilling prospects will continue to grow as the asset is further delineated while the additional oil reserve potential is expected to maintain Enterra's portfolio balance between oil and natural gas.
Enterra had also introduced a new oil play in Oklahoma in September 2009, and the Trust now announces the completion and execution of the definitive joint agreements with its primary partners. The expected spud date of the first well into this play will be in December 2009 with Enterra as operator. Internal estimates suggest initial gross production rates of 200 bbls/day or more of light oil and average gross reserves per well of about 130,000 bbls. Results of drilling and testing are expected in early 2010. Enterra has a 40% working interest in approximately 9,000 net acres in the play.
"Both of these oil plays represent new resource-type growth opportunities for Enterra aimed at increasing the number of our core properties, and are in addition to our existing prospect inventory", commented Don Klapko, Chief Executive Officer of Enterra, "For much of the last two years the communication with Enterra's unitholders and other stakeholders has been focused on debt reduction, process improvement and efficient cost management. And, while we'll continue to build on the successes we've delivered in all those areas, it is gratifying to be able to announce new growth oriented oil exploration opportunities for Enterra. We will also continue to methodically implement our plans to further reduce the overall leverage on our balance sheet and continue to improve our financial flexibility."