NuVista Energy (ticker: NVA) provided a major operational update today, outlining its activity in several locations.
is pleased to provide a significant operational update including the startup at Bilbo block of our largest pad drilled to date; powerful IP30 success from Elmworth block high intensity fractured wells (HiFi); the successful and on-time conclusion of the Keyera Simonette gas plant planned turnaround; and the achievement of a compelling well test in our emerging Pipestone block. This test provides early flow data, increasing our confidence in above-typecurve results.
Bilbo Block
NuVista reports that its compression and dehydration facility in the Bilbo Block is now at capacity, with production of up to 20,000 BOEPD. Its largest pad, containing six wells, has now been successfully started up. Flowback and cleanup are still ongoing, but initial results are very encouraging. The wells are averaging approximately 3.8 MMcf/d raw gas and over 1,000 Bbl/d of condensate each.
Elmworth Block
All 9 planned new Elmworth wells have been completed successfully and are in various stages of tie-in and initial flowback. Two of these wells have HiFi completions and have nearly reached IP30 with flow rates which eclipse prior Elmworth results. The wells flowed an average of 2,200 Boe/d including 9.9 MMcf/d raw gas and 723 Bbl/d of condensate each. This represents more than 2.5x the condensate rate of our Elmworth HiFi typecurve and more than double the condensate rate of our Elmworth historical average results. The IP30 CGR was 73 Bbls/MMcf versus the typecurve CGR of 40. If these results are repeated for the other HiFi wells which are coming on stream in Elmworth, it would represent a step-change improvement in well economics.
Pipestone Block
NuVista has drilled the first well in this block. The well was drilled to a lateral length of 3,100 m in just 19 days, and has now been successfully completed with regular fracture intensity including 26 stages. The initial cleanup and flowtest was conducted within the limit of environmental flaring regulations, with very encouraging results. The well flowed for approximately 3.5 days with the final 24 hour rate being over 1,400 Boe/d including 6 MMcf/d raw gas and 600 Bbl/d condensate, with rates still increasing at the end of the short test period. Although the well was still cleaning up, these early indications provide a CGR greater than 100 Bbl/MMcf versus initial type-curve expectation of 60 Bbl/MMcf. The well will remain shut in until NuVista’s Pipestone block facilities are in place.
Lower Montney
NuVista has recently completed the drilling of our first Lower Montney horizontal well, at Bilbo.
The planned Keyera Simonette gas plant turnaround was completed on schedule, allowing our Bilbo block to resume operations. Current corporate production is returning to the prior run rate of 33,000 Boe/d, and we expect to push beyond those levels in the coming weeks as we remove welltest equipment from these new wells and bring them on to permanent production. With drilling and completion costs continuing in the expected range, we anticipate being in the upper portion of our capital guidance range of $280 – $300 million as previously communicated. We reiterate the production guidance ranges for the third quarter at 26,000 to 29,000 Boe/d and fourth quarter at 35,000 to 38,000 Boe/d. Guidance for the full year of 2017 is also unchanged at 28,000 to 31,000 Boe/d.
