The well was drilled to a total measured depth of 4,563 metres, with a horizontal leg of 1,068 metres, approximately 200-500 metres shorter than Contact’s other Kakwa wells and the shortest of the company’s Kakwa horizontal wells drilled to date. The well was completed using a water-based nitrogen foam frac and then tested for approximately 119 hours, flowing up 4.5 inch casing.

During the final 24 hours of flow-back the well continued to clean up frac fluid and produced against anticipated gathering system pressure of approximately 1,800 kPa and averaged gross production rates of 1,076 boe/d consisting of 621 bbl/d condensate and 2,734 mscf/d natural gas (155 bbl/d and 684 mscf/d, or 269 boe/d combined, net to Contact).

The 02/14-30 Well is Contact’s first operated well in the uppermost Montney D4 interval. Contact is encouraged by the strong test rates and high ratio of condensate to natural gas production from this interval and the potential for additional development of this interval across its entire East Kakwa land position.

Production results from the Upper Montney D4 interval in the 02/14-30 Well have been announced based on the initial production test period given the significance to the Company of having achieved Kakwa development success in an additional Montney interval. As previously announced, Contact expects to release further development drilling production results at Kakwa based on 30 day initial production rates.

The company advises that although the initial rates from the 02/14-30 Well are very encouraging, production test results are not necessarily indicative of long-term performance or of ultimate recovery from the 02/14-30 Well.

Final well equipping and onsite facilities work will begin immediately to provide for tie-in of production from the 02/14-30 Well into Company-operated infrastructure. Contact anticipates that the 02/14-30 well should be ready for production in early May 2014.