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Journey Drills Duvernay Stratigraphy Test in Q2; Production Relatively Flat

Share Print Bookmark    |    Tuesday,August 07,2018

Journey Energy Inc. reported its Q2 2018 results.

Highlights:

- Achieved production of 10,036 boe/d in the second quarter, a 2% decrease from the second quarter of 2017.

• Liquids (oil and natural gas liquids) production accounted for 4,687 boe/d or 47% of total production during the quarter.

- Drilled 4 (4.0 net) successful wells with three in Matziwin and one Duvernay stratigraphic test in Gilby. The three Matziwin wells were all offsetting Journey’s successful 14-28-23-13W4 well which was drilled in the first quarter. As expect all wells encountered virgin reservoir pressure. All three Matziwin wells were placed on-production in the third quarter.

Ops - Duvernay Stratigraphy Test

During the first quarter, Journey drilled two horizontal wells in its Matziwin core area.  The 14-28-23-13W4 well which was placed on production on March 13 has already produced in excess of 44,000 boe (80% oil).  This well encountered near virgin reservoir pressure, establishing a new undrained lobe in the center of our Matziwin field. The IP30 of this well was approximately 470 bbl/d of oil and is the highest IP30 oil production rate achieved by Journey in Matziwin to date.    Based upon Journey’s mapping of the pool, this extension is currently estimated to contain up to 20 million barrels of OOIP.  This pool may support up to eight additional locations. Journey drilled three additional development wells offsetting 14-28 in the third quarter. All wells are now on production with initial results suggesting they will meet or exceed our type curve forecast. As expected all wells encountered virgin pressure.  One well at 13-33-23-13W4 had test rates which were superior to 14-28. These results are encouraging and set up an additional three development wells for drilling early in 2019. Further updates on Matziwin drilling will be provided in November.

Journey has also been extremely active in advancing the development of its emerging Duvernay resource play.  Journey has now closed all previously announced undeveloped land acquisitions and assembled a highly prospective, contiguous, 100% working interest land block. Journey’s activity during the past few months has been focused on addressing near term expiry issues along with the modeling and planning for the initial development phase.  The results of the vertical test well at 6-28-42-3W5 confirm Journey’s interpretation that its land block contains some of the thickest and most prospective shales in the East Duvernay play. The 6-28 well was set up to be re-entered and drilled horizontally, which it anticipates will become the first horizontal well test.  Throughout the quarter, Journey continued to evaluate strategic partnerships to advance the development of this significant resource.  Journey will provide a more fulsome update to its shareholders in due course.