Calgary-based Nextraction Energy (CVE:NE) reported Thursday that it has completed the testing of its first Viking horizontal light oil well in the Provost Viking Pool in east-central Alberta. The 1,200 metre horizontal leg was fractured in 13-stages and flowed at an average rate of 177 barrels of oil equivalent per day (boe/d) during the first five days of testing.
Average flow rates were comprised of 109 barrels of oil and 410 mcf per day of natural gas, with a 75% watercut, the Canadian junior oil and gas company said.
To market and sell the natural gas associated with the oil reserves, the company plans to construct a pipeline as production volumes are sufficient. Permitting of the pipeline is underway and Nextraction expects construction to be completed late in the fourth quarter, it added.
In an effort to see if gas rates could be reduced to allow the well to continue producing during pipeline construction, the company inserted a bridge plug in the well, isolating five fractured intervals from production.
After installing a down hole pump in the well, the company tested the eight remaining open fractured intervals for eleven days at an average rate of 73 boe/d, comprised of 38 barrels of oil and 210 mcf gas per day, with a 91% watercut, it said.
Nextraction also said that production from the well will continue when the pipeline is operational for gas sales. Production facilities to handle the fluid production are currently being expanded.
“Our first well in Provost was successful and is one of the more productive wells in the field. The gas adds economic benefit to the project and we are encouraged to drill a second well in the area,” said president Mark S. Dolar.
Indeed, regulatory approvals have been received for the second horizontal well, which is expected to spud shortly.
Nextraction owns 5.25 sections in its Provost pool, including a 100% working interest in one section, and a 50% working interest in an additional 4.25 sections with a joint venture partner.
The company has identified 21 further locations for wells, which includes 4 locations at 100% interest, and 17 locations at 50% interest, resulting in a further 8.5 net wells. In addition, another 15 locations may be drilled at a 50% interest, for 7.5 net wells, should down spacing be warranted, Nextraction added.
Earlier this month, the company announced it has closed a $1.5 million bridge loan with a related party to continue the development of the project.
In addition to the Provost pool, the company is producing light oil and liquids rich gas at its Pinedale Anticline property in Wyoming.