Great Plains Flows First Oil from Nisku Wells
Great Plains has completed the Pembina/Crossfire pipeline project and production has commenced from the first of two Company-owned (40% working interest) Nisku oil wells. The pipeline became operational on April 1, 2010 and was completed on schedule and under budget.
The well at 15-33-50-5 W5M was placed on production at rates increasing from approximately 400 BOE/d during line fill to currently just over 900 BOE/d (360 net to Great Plains). The Company estimates that the well will be produced at an initial stabilized rate of approximately 1,000 BOE/d (400 net to Great Plains). Total corporate production is now at approximately 1,700 BOE/d of which 50% is oil.
The 11-12-51-5 W5M oil well in which Great Plains holds 40% working interest has also been tied-in though is not yet producing pending stabilized production from the 15-33 well. Plans are now being finalized with the operator to the expected on-stream date and start-up production rates for the 11-12 well.
Also at Pembina, Great Plains' horizontal Cardium oil well at 13-07-50-5 W5M is now being equipped for production and is expected to be on-stream by April 19, 2010. The oil will initially be trucked; however, Great Plains is currently evaluating different pipeline options to lower future operating expense.