Contact hails Kakwa Montney tight gas-liquids well results

Contact Exploration Inc., Calgary, said completion of its fourth operated horizontal Middle Montney formation tight gas-liquids well extends the scope and magnitude of the company’s East Kakwa project in Alberta.

The horizontal 5-23-63-6w6 well averaged 3.7 MMscfd of gas and 815 b/d of condensate in the last 24 hr of a 170-hr flowback period against anticipated gathering system pressure of 2,000 kPa.

Contact said the 5-23 well continues to demonstrate a high ratio of condensate to natural gas production from the Kakwa Montney play, averaging condensate at 195 bbl/MMscf for the entire test. The well’s total depth is 70-100 m vertically deeper and wellsite 2 miles farther west than any other Contact-operated Kakwa well.

Encouraged by the initial rates, the company cautioned that they are not necessarily indicative of long-term performance or of ultimate recovery.

Contact plans to release 30-day initial production rates from other Kakwa wells, the results of which are expected to be more reflective of longer-term performance.

Facilities and pipeline work are starting to provide for tie-in of production from the 5-23 well into company-operated infrastructure, including the 16-7-63-5w6 compressor station and condensate stabilization facility. Construction of the 16-7 facility with start-up set for December.

Contact continues to improve the design of its Kakwa operated wells. The company spudded its fifth operated Kakwa well at 16-25-63-5w6 on Sept. 10, 2013, and reached a total depth of 4,680 m after 33.5 days of drilling, a 25% reduction in drilling time from other Contact-operated Kakwa wells. Production casing is being run, and completion will start in November.

Contact signed a 1-year drilling contract that secures a rig for use at Kakwa. The rig will spud the next 25% working interest Montney well at the 16-8-63-5w6 surface location toward a bottomhole spot at 16-17-63-5w6 in November.

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