Tamarack Valley Energy Ltd., Calgary, completed construction and commissioning of its owned and operated 15 MMcfd Wembley gas plant, which will process associated natural gas from the operator’s Charlie Lake play in Alberta. The plant, which is expandable to 30 MMcfd, was brought onstream June 9, the company said in a July 27 earnings release.
The company also agreed to sell a 49.9% stake in the sweet natural gas processing plant, in addition to gross overriding royalty interests in the Clearwater and Charlie Lake operating areas including 17,000 gross undeveloped acres to Calgary-based Topaz Energy Corp. for $39.5 million (Can.). Following closing of the sale, Tamarack will continue to operate the gas plant and will retain full access to 100% of the capacity, the company said.
Activity in Charlie Lake resulted in drilling of five net wells and completion of eight net wells with six net wells coming on stream during the quarter. Production averaged 15,000 boe/d, representing 22% of the total corporate production for the quarter.
The five wells are flowing through the Wembley plant with initial rates averaging 800-900 b/d of oil per well. Charlie Lake rates are expected to remain stable in the 16,000-17,000 boe/d range. The company expects to begin drilling one well (0.5 net) in August and continue in late September with three net operated wells planned for this year’s fourth quarter.
Clearwater production averaged 37,800 boe/d in the quarter, representing 57% of corporate production. During the quarter, Tamarak drilled and brought onstream 19 net and 22 net wells, respectively. The company drilled two net injector wells. Tamarack currently has six rigs running (three at Nipisi/West Marten Hills, two at Marten Hills, and one at Southern Clearwater).
Overall, the company had quarterly volumes of 66,738 boe/d, a 52% year-over-year increase (21% on a per share basis). The development program was partially offset by a loss of 1,500 boe/d due to direct and indirect impacts of the Alberta wildfires and unplanned third-party outages. Production impacts were largely restored prior to June 30, with second-half production levels expected to average 68,000-70,000 boe/d.
Full year production guidance is maintained at 67,000-71,000 boe/d.
The company invested $117.8 million in the quarter, including drilling, completion, and equipping of 19 net Clearwater wells and five net Charlie Lake wells.
The company's capital budget for the year remains unchanged at $425-475 million (Can.)