Contact Exploration Inc., Calgary, plans to spud in September 2011 at a newly defined oil prospect named Hopewell in the Edgett’s Landing area of New Brunswick.
Contact has a 94% interest in the Hopewell well, which is designed to test a new pool believed to be hydrocarbon-bearing on the company’s South Stoney Creek acreage in the Moncton subbasin.
Extensive production testing of a well that flanks the seismically defined Hopewell structure demonstrated good light oil production and good opportunity to move upstructure with further wells. The location has been built.
Hopewell is just south of Stoney Creek oil and gas field, where natural decline has flattened at both horizontal wells drilled in late 2010 and production continues at a combined 100 b/d of oil with netbacks of $70/bbl.
Meanwhile, in the Alberta Deep Basin, Contact has established a new core area by paying a land equalization sum to another oil and gas operator and committing to drill a Contact-operated well.