CALGARY, Jan. 17, 2013 /CNW/ - Marquee Energy Ltd. ("Marquee" or the "Company") (TSXV: MQL) is pleased to provide an update on recent operations across its two key oil projects at Michichi and Lloydminster.
These projects provide Marquee with a strong foundation of high netback oil production and provide a basis for repeatable development potential for the next several years. Following Marquee's fourth quarter disposition of its gas weighted Willesden Green property, Marquee is currently producing greater than 2,300 boe/d (62% oil and liquids). Combined production from the Michichi and Lloydminster core areas now represents almost 70% of corporate production.
Marquee is the most active driller in this emerging light oil play having drilled 10 of more than 30 horizontal wells licensed in the Michichi area since July 2011. To date, Marquee has realized a 100% success rate on the 10 (100% working interest) horizontal light oil wells drilled into the Banff and Detrital formations. Eight of these wells are currently on production while the remaining two wells are awaiting completion operations and are expected to be on production in February. The first horizontal well of Marquee's three well fourth quarter program averaged more than 200 boe/d over an initial five day test period and achieved an IP30 of 141 boe/d with oil and liquids weighting close to 90%.
Marquee continues to optimize drilling and completion techniques, including moving to multi-well drilling pads, in order to improve capital cost performance. The Company has recently tested a new frac design with promising results and expects the method can increase productivity from new drills compared to conventional multi-stage fracs and reduce completion costs by as much as 40%.
Marquee continues to expand its land position and seismic database in the area. Through acquisitions and landsales, Marquee now owns more than 118 net sections of operated Crown lands in the area. Marquee also expanded its seismic database at Michichi to 1,281 line kilometers of 2D seismic and 104 km2 of 3D seismic. Analysis of this seismic data in conjunction with ongoing detailed geologic evaluations, including extensive review of regional core data, is contributing to the expansion and de-risking of the Company's prospect inventory.
Expansion of the Company's 8 mmcf/d gas plant at Michichi and the associated gathering system will be complete within the next two weeks. Installation of a five kilometer long six inch gas gathering system will allow the Company to tie-in existing and future horizontal wells to the new gas plant, which will reduce the amount of gas currently going to a third party facility and result in lower processing costs, improve natural gas liquid recoveries, and reduce future well tie-in costs and on-stream times.
At Lloydminster Marquee successfully drilled ten vertical heavy oil wells in 2012, five of which were drilled and put on production during the fourth quarter. These wells were drilled, completed, equipped with production facilities, and placed on production within three weeks of rig release for under $600,000 per well.
Marquee remains committed to efficiently capitalizing its core oil assets in eastern Alberta while continuing to improve its financial flexibility.
The Company is expecting to provide details of its planned operations and guidance for 2013 in early February and is currently scheduled to release its 2012 year-end financial results after close of market on March 21, 2013.
SOURCE Marquee Energy Ltd.
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