The company has also spud the first of two Pekisko horizontal oil wells in southern Alberta and it also expects to spud its first of two Viking horizontal oil wells during August.
Equal is not changing its previous production guidance of 9,200 to 9,700boepd for 2010, but advises that it expects to be on the lower end of that range.
Equal had planned to drill four dual-leg horizontal wells in the Hunton play in 2010 but now the company plans to drill only one well for the time being. This deferral has been brought about by legal proceedings initiated by Equal’s former farmout participant which is currently in Chapter 11 Bankruptcy.
The farmout agreement was terminated by Equal on January 18, 2010 due to the failure of the farmout participant to fulfill certain terms of the agreement. The parties and the court have agreed that the termination of the farmout agreement should be determined by an Arbitration panel pursuant to the terms of the farmout agreement. The company anticipates a resolution to this matter sometime in the fourth quarter of 2010.
