Michael Kabanuk, President and Chief Executive Officer of Granite Oil Corporation (TSX: GXO), presented today at EnerCom’s The Oil & Gas Conference 20®.
Granite Oil Corp. is a dividend-paying, junior oil producer based in Calgary, Alberta that owns and operates a large, recently discovered Alberta Bakken oil pool in southern Alberta. Granite was founded in May 2015 through a Plan of Arrangement that divided DeeThree Exploration Ltd. into two pure-play companies, Granite Oil Corp. and Boulder Energy Ltd. The plan was approved by a vote of shareholders on May 14, 2015, and each new company began trading on the TSX on May 21, 2015.
In the company’s Q2’15 release, well costs were tracking 18% below original guidance and management elected to increase the dividend by 8%. Granite uses a gas injection EOR scheme on its assets and is currently producing 3,250 BOPD.
During the company’s breakout session, management was asked the following questions:
- How many wells do you have? Are all these wells producing? Is the gas injection a certain part of all these operating wells?
- How much equity does ownership have?
- How does the gas injection work? Is the process sustainable?
- If you re-inject the gas as you said, does that reduce your gas production?
- How did you convert DeeThree stock to the other stock? What was the conversion ratio?
- Will you combine other assets in the future, or do you simply want to run this gas injection project for the long term?
- What is the cost to convert a normal well into a gas injection well?
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