Alberta

By OGJ editors
HOUSTON, Feb. 18 – ProspEx Resources Ltd., Calgary, completed a third horizontal well at East Kakwa in the Alberta Deep Basin at the final rate of 5.5 MMcfd of gas on 21 hr test with 310 psi flowing pressure.

Completion of the 1-6-65-4w6 well means that ProspEx has now evaluated drilling locations across the 13-km length of its land base. Sales should start by the end of March 2010. ProspEx has identified 20 gross (11 net) drilling locations assuming two horizontal wells per section.

ProspEx noted that the test rate doesn’t match those recorded at its first two East Kakwa horizontal wells but is in line with the company's economic model for the project, which assumes initial production rates of 4.5 MMcfd.

ProspEx has a 50% working interest in the 1-6 well. Seven Generations Energy Ltd., a private company, holds the other 50%.

The 2-33-63-4w6m horizontal well has been on production since early November 2009 at an average 7.5 MMcfd. The 15-19-64-4w6 horizontal well came on production in early February 2010 at a facility-restricted 10 MMcfd.

Completed well cost averaged $4.1 million/well before deduction of $700,000/well in Alberta Drilling Royalty Credit.

ProspEx didn’t identify the formation, but the area produces from five Cretaceous zones including Falher channels at 2,400-2,600 m true vertical depth (OGJ Online, Jan. 12, 2010).