Quarterly / Earnings Reports | Second Quarter (2Q) Update | Initial Production Rates | Drilling Activity

Advantage Targeting Liquids-Rich Montney in 2H18; Talks Latest Activity

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Advantage Oil & Gas reported its Q2 2018 results.

Production & Highlights:

• During the second quarter of 2018, average production was 212.1 mmcfe/d (35,352 boe/d), including liquids production of 1,067 bbls/d (70% condensate)

• Advantage’s increased focus on liquids-rich activities during the second half of 2018 includes commencing production from 5 standing liquids-rich Middle Montney wells and the commencement of a drilling program which includes 10 Middle Montney wells in east Glacier and an additional 5 liquids-rich wells at Valhalla. 

Ops Update by Area

Glacier - Ups Frac Stages to 34 per Well

Six Middle Montney and two Lower Montney wells located on an eight well pad in the western portion of Glacier were completed in the first quarter of 2018 and were designed to evaluate the impact of tighter frac spacing in an area where there are few Middle Montney wells.

The six Middle Montney wells on this pad contained an average frac count of 34 stages per well representing a 76% increase over our previous Middle Montney wells.  Four of the six wells have been placed on production with flow duration ranging from 30 to 100 days. On average, the wells have flowed 62 days at an average restricted rate of 8.3 mmcf/d representing a 62% increase over our unrestricted type curve.  Production rates remain restricted on all wells with a current average flowing wellhead pressure of 8,600 kPa

The two Lower Montney wells have been on restricted production for 17 days averaging 7.5 mmcf/d with current flowing pressures of 10,000 kPa which significantly exceeds the flowing pressure assumption in our average dry gas type curve.

We have spud the first well of a 10 well Middle Montney pad located in east Glacier where initial C3+ liquid yields have been approximately 50 to 80 bbls/mmcf  (approximately 50% C5+) and the knowledge gained in recent well completions in the western portion of Glacier will be used to further enhance well performance.

Valhalla - Well Production Restricted

One of the standing Middle Montney wells was placed on production during the second quarter of 2018 and has produced under restricted flow at approximately 6 mmcf/d (20% above Advantage’s Middle Montney average well type curve) at a flowing pressure of 6,900 kPa for 73 days.  Well production from Valhalla will remain restricted until Advantage’s new Valhalla facility, which includes 40 mmcf/d of compression and liquids handling equipment, is completed in the fourth quarter of 2018.   This facility will increase the throughput capacity of our existing pipeline connecting Valhalla to Advantage’s Glacier gas plant.   Two standing Upper Montney wells will also be brought on-production after the Valhalla facility is completed.

Advantage will drill a new 5 well liquids-rich pad at Valhalla as part of our upcoming winter drilling program.