WestFire Highlights Updates on Viking Ops
WestFire provided an update of operational and land acquisition activities.
Viking Operational Update
WestFire has established a strong presence in the Viking light oil resource play in the Redwater area of Central Alberta. Over the past nine months, WestFire participated in the drilling of 13 (10.9 net) Viking horizontal wells at Redwater, of which 11 (9.9 net) of these wells are operated by the Company.
These thirteen wells produced an average gross production rate of 80 barrels of oil per day (bopd) per well for the first month with individual well rates ranging from 26 to 124 bopd per well. Of the thirteen wells, eight were drilled as monobores, three with intermediate casing and liners, while two were completed using open hole packer systems. An average of 14 fracs per well with 12 tonnes of sand per frac were performed on each well along an average horizontal length of 858 meters. Oil was used as the carrying fluid on eleven wells while water was used on the remaining two. Six of the wells have recovered all of their load fluids to date.
The Company continues to make refinements to its Viking horizontal drilling and completion techniques in an effort to improve well productivity and lower capital costs. The net on-stream costs on WestFire operated wells this past winter averaged $1.5 million per well. Modifications to our program gained from our field experience are expected to lower these costs to $1.2 million per well.
The Company has initiated the preparation of 17 drilling pad sites at Redwater. Each pad will allow for the drilling of up to four wells. The first well of an 18 well program in this area is expected to be spud in late June.
In addition, WestFire has a program in West Central Saskatchewan that allows for the drilling of 11 Viking horizontal wells for the balance of 2010.
Viking Land Acquisition
WestFire is also pleased to announce that it has entered into a lease option and drilling agreement that provides access to approximately 40 sections of undeveloped land with Viking light oil potential in the Dodsland/Kerrobert area of West Central Saskatchewan.
WestFire's land base on the Viking light oil resource play now stands at approximately 242 (220 net) sections representing a future drilling inventory exceeding 500 potential horizontal development locations.