Coelacanth Drilling Program Update: Accelerating Growth and Enhancing Production
Coelacanth has officially kicked off its drilling program at the 5-19 Pad at Two Rivers East, marking a significant step forward in their operations. The program includes the drilling and completion of 3 Lower Montney wells, the completion of 1 Upper Montney well, and the drilling of a Bluesky disposal well, with a total estimated cost of $36 million. The company is on track to complete the 4 pad wells by late October 2024.
The Lower Montney wells drilled in 2023 showed promising results, with an average production rate of 1,338 boe/d per well, totaling 4,014 boe/d for the program. The upcoming program is expected to further enhance these results once the new Two Rivers East facility is operational in April 2025.
Key Strategic Benefits of the Program:
- Accelerating company growth
- Adding valuable drilling inventory through the Upper Montney zone
- Reducing processing and transportation risks
- Minimizing disruptions during facility start-up
- Enhancing financial and operational flexibility for 2025
- Creating production certainty for future decisions
Additionally, Coelacanth has obtained regulatory approvals for a new battery facility at Two Rivers East, which is set to be operational by April 2025. The company also secured $52 million in revolving bank credit facilities and a commitment of approximately $22 million from a Mid-Stream company for pipeline financing.
With a strong financial position and a strategic drilling program in place, Coelacanth is poised for continued growth and success in the coming years. Stay tuned for more updates on their progress as they work towards achieving their production targets.
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Oil and Gas Terminology:
The Company uses industry terms such as Liquids, Bbls, NGLs, Natural Gas, Mcf, Boe, etc., to provide clarity on production metrics. Please refer to the disclosure for a full understanding of the conversion rates and definitions.
Product Types References:
The Company provides insights into product types such as Natural Gas, Oil, NGLs, and Liquids to enhance transparency in sales volume reporting. Understanding these distinctions is crucial for interpreting the Company’s performance.
Forward-Looking Information:
This news release contains forward-looking statements and information reflecting the Company’s expectations and assumptions for future operations. While these statements are made in good faith, actual results may vary due to inherent industry risks and uncertainties.
Test Results and Production Rates:
Test results from prior drilling programs are presented for reference, but it’s essential to note that future production rates may differ based on operational conditions. The Company aims for stable and sustainable production levels in the long term.
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