Exploration & Production | Operational Updates | Drilling / Well Results

Delphi Exceeds Previous Record with Bumper Well

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   |    Monday,January 27,2014

Delphi Energy Corp. has provided the following operations update on its Montney capital program.

Delphi has announced completion and clean-up test results of its delineation well at 15-21-60-23 W5M at East Bigstone.

The 15-21 Montney well was drilled to a total depth of 5,875 metres with a horizontal lateral length of 2,886 metres and stimulated witha 30 stage slickwater hybrid completion.

The well was produced on clean-up over a seven day period, recovering approximately 25 percent of the initial load frac water and is now shut-in to equip and pipeline connect the well for production. After running production tubing, the well produced over the final 24 hours at an average rate of 5.5 million cubic feet per day of raw gas, 665 barrels per day of wellhead condensate (122 bbls/mmcf of raw gas)and approximately 384 bbls/d of load frac water. With an estimated plant NGL yield of 39 bbls/mmcf of raw gas, total production for the 15-21 well over the final 24 hour period was approximately 1,686 barrels of oil equivalent per day, (52 percent field and plant NGL's). The well is expected to commence production in February, and consistent with the previous slickwater fracture stimulatedwells, will continue to recover load frac water over the next few months.

The 15-21 well is the farthest west Montney well drilled to date on the Company's East Bigstone lands and is located approximately seven kilometres west of the previously announced 15- 30 -60-22W5 well that averaged 2,076 boe/d over its first 30 days of production.

The Company owns 124.5 gross sections (109 net) of Montney lands in the Bigstone area.

The 15-21 well is also the Company's fifth extended-reach horizontalMontney well utilizing a 30 stage slickwater hybrid completion. Thefirst four Montney wells at East Bigstone stimulated with the same 30stage slickwater hybrid fracturing technique continue to exceed theCompany's type well expectations.

Field operations continue in East Bigstone with a total of threegross (2.7 net) Montney wells planned to be drilled and completed prior to break-up in 2014. The 13- 30 -60-22 W5M (13-30) extended-reach horizontal well is scheduled to be completed in thefirst two weeks of February. The well set a new Company record fordrilling days with drilling costs also setting a new low ofapproximately 4.75 million. Drilling times for the Company's Montney wells have decreased 35 percent and drilling costs have been reducedby more than 25 percent. The drilling rig has commenced operations onthe third well of the winter drilling program at 2-1-60-23 W5M.

To handle the rapidly growing Montney production volumes, the Company is continuing with construction to expand its 7-11 facility to handle 45 mmcf/d of raw gas as well as increased field condensate volumes,with the installation of larger inlet separation, increased condensate storage tank capacity and additional compression. The facility expansion is expected to be completed by the end of February.

Corporate production during the month of December 2013 averaged 9,500boe/d based on field estimates. Montney production during the month averaged approximately 5,000 boe/d, a 615 percent increase fromapproximately 700 boe/d recorded in January 2013 from the initial three wells. The Company has achieved a step change in well performance from its extended-reach horizontal lateral sections stimulated with the slickwater hybrid fracturing technique as compared to conventional gelled oil fracs. The wells continue to exceed the Company's initial type curve expectations. Given the exceptional well performance to date, Delphi plans to re-evaluate itsbase type curve assumptions after the winter drilling program.