New wells to be drilled

By Geoff Lee

January 24, 2017 8:42 AM

Higher oil prices have prompted two oil and gas companies that operate in the Lloydminster region to drill new wells in 2017.
Mooncor Oil and Gas Corp, a junior oil and gas company based in Toronto, plans to reactive its two heavy oil wells in Lloydminster, Alberta.
Crew Energy, which is hoping to sell its Lloydminster heavy oil assets, has allocated $7.5 million to drill six wells in 2017 in the region and continue with well optimization and workovers.
The expenditure is part of Crew’s $200 million capital expenditure plan for 2017 announced on Jan. 5.
“The sales process of our heavy oil asset at Lloydminster is ongoing and as a result Crew has included a nominal amount of capital for Lloydminster in the budget,” said Dale Shwed, president and CEO.
The news is in line with the forecast by the Canadian Association of Oilwell Drilling Contractors of 4,665 wells to be drilled in Canada in 2017, an increase of 1,103 from 2016 with higher oil and gas prices factored in.
At current commodity prices, Crew is planning to maintain heavy oil production at approximately 2,000 barrels of oil equivalent per day.
Crew plans to focus growth in the Montney shale gas region of Northeast B.C.
Allen Lone, Mooncor’s chief executive, said its two Lloydminster wells remained inactivate due to the historically low oil prices, but the recent recovery in oil prices has made it economically feasible to reactivate them.
“The re-activation of the wells is intended to bring the company back into production and position the company and its assets to explore and pursue a variety of short and long term strategic business initiatives,” he said in a statement on Jan. 12.
He said the wells require some relatively minor maintenance work and repairs in order to restore them to full production.
Mooncor estimates approximately 40,000 barrels of oil are recoverable from the wells and estimates post workover oil production rates to be 30 net barrels per day.
Mooncor is a junior oil and gas exploration company that holds interests in lands in the Pondera and Teton Counties in Northwestern Montana, the Muskwa /Duvernay liquids rich shale gas area in Hamburg, Alberta.
In southwest Ontario, the company’s focus has been on conventional oil and gas opportunities.

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