Painted Pony Petroleum continues to achieve significant increases in its production base that have exceeded the company's expectations. The recent production test results at Blair and Townsend, in conjunction with the commissioning of the new natural gas processing facility, have prompted the company to increase its second quarter 2014 average production estimate.
The Q2 production estimate has been increased to 13,500 boe/d from the previous estimate of 11,500 boe/d. Field production estimates during the first week of April 2014 exceeded 15,000 boe/d, including 79 MMcf/d of raw natural gas production, 1,050 bbls/d of natural gas liquids production and 1,000 bbls/d of crude oil production.
Annual average production estimates have also been increased to 13,000 boe/d (86% natural gas) from a previous estimate of 11,500 boe/d (85% natural gas). Field estimated production for the first quarter of 2014 was approximately 9,750 boe/d (87% natural gas) including 1,500 bbls/d of oil and natural gas liquids.
The Company has recently completed the commissioning of its 100% owned and operated natural gas processing facility at the 33-J pad with a design capacity of 25 MMcf/d. Field estimated condensate yields at this facility since April 1, 2014 have been 40 bbls/MMcf, and receive a price that approximates the Edmonton Par reference price for light oil.
Painted Pony anticipates reaching full capacity at this facility by the end of April 2014. The Townsend property is the site of the Company’s highest liquids yield production within its British Columbia Montney assets.
In addition, Painted Pony recently completed two 100% working interest Montney wells at Townsend. A Lower Montney well and an Upper Montney well have been flow-testing in-line through the company’s new 100% owned natural gas processing facility since April 1, 2014. These wells have flowed at a combined average raw wellhead rate of 12.0 MMcf/d plus associated condensate of 40 bbls/MMcf (480 bbls/d) over the last three days.
The company has undertaken a pre-engineering study with a third party midstream company to build a refrigeration and natural gas plant facility with an expected capacity of approximately 190 MMcf/d.
At Blair, Painted Pony drilled 5 (5.0 net) Montney wells to date in 2014. The Company completed two of the 100% working interest Montney wells on the 41-F pad drilled to date, and anticipates completing the remaining three 100% working interest Montney wells during the second quarter of 2014.