Contact Exploration continues Montney Kakwa development

Contact Exploration said that the three Contact operated wells, at 2-18-63-5 W6M, 8-20-63-5 W6M and 9-20-63-5 W6M at Kakwa, drilled from the company’s first three-well pad, have each been successfully completed. Contact holds a 25% working interest in the New Wells.

Each of the New Wells was drilled with lateral lengths exceeding 1,900 meters, being approximately 50% longer than the average lateral length of wells previously drilled by Contact at Kakwa, with each being drilled and completed on time and budget. The New Wells have undergone testing for a longer duration than Contact’s previous Kakwa wells in order to assist with the recovery of the additional frac water volumes pumped in connection with completing these longer wells.

Contact is very encouraged with the test results from the New Wells. The company expects the 16-7 compressor station (’16-7 Facility’) existing capacity of approximately 15 mmcf/d of natural gas and associated liquids to be fully utilized once the New Wells are placed on production, adding to the production volumes from Contact’s existing Kakwa wells. In keeping with the company’s practices, Contact expects to announce the initial 30 day production volumes from the New Wells in due course.

The New Wells are currently being equipped for start-up in September 2014, however, the company has been advised by the mid-stream gas plant operator of a 16 day scheduled plant turn-around in mid-September 2014. Contact anticipates that all company production will be shut-in for the duration of this turn-around. Accordingly, the New Wells may not be fully producing until October 2014.

The company continues to utilize two rigs in its ongoing Montney Kakwa horizontal drilling program. In addition, Contact has recently equipped its Upper Montney operated well (25% WI) with an artificial lift and expects to see initial results from this operation in mid-September 2014.

Contact is currently designing an expansion to its operated 16-7 Facility (25% WI) to increase capacity to up to 30 mmcf/d of natural gas and associated liquids, with a targeted start-up for this expansion of Spring 2015.

Press Release, August 25, 2014; Image: Contact Exploration