Rubellite Energy Inc. announced first quarter 2023 results.
The drilling rig was moved in mid-February to a new Figure Lake pad at 9-31-62-18W4 (the “9-31 Pad”) and a step-out multi-lateral horizontal well was rig released in early March, completed its OBM recovery operations and recorded an IP30 rate of 102 bbl/d. Finally at Figure Lake, one well was rig released in late March and a second well was drilled in early April on a new pad (the “10-19 Pad”) on the Buffalo Lake Metis Settlement acreage acquired in the first quarter of 2023. Both wells on the 10-19 Pad have recovered their OBM load fluid and are within their 30 day initial production period.
The development / infill drilling program at Figure Lake resumed in early May as break-up conditions subsided, allowing for access. The drilling rig returned to the 3-26 Pad to complete the additional three well development program planned for that site. An additional 17 (17.0 net) multi-lateral horizontal wells are expected to be drilled in the vicinity of the development ‘sweet spot’ at Figure Lake over the remainder of 2023.
During the first quarter, Rubellite rig released three (2.5 net) multi-lateral wells in its Northern Exploration Program. The one (0.5 net before payout) exploratory horizontal multi-lateral well at Dawson (5-16-81-16W5) had approximately 7,500 meters of horizontal length as compared to a Figure Lake type curve(1) well with approximately 9,000 meters of horizontal length and recorded an average rate of 81 bbl/d for its 48 days of production before it was shut-in in late March due to winter only access conditions. In April, Rubellite, along with its 50% partner, made its election to drill a second earning well at Dawson prior to April 1, 2024. The Company will continue to review data as information is released and monitor performance from the multiple competitor wells in the Dawson / Seal area to inform its follow-on exploration activity.
At Peavine, the Company shut-in its two exploratory wells as spring break-up approached and will continue to monitor competitor wells in the area to inform further drilling elections on lands under its Farmout and Option Agreement in the Peavine area.
Rubellite’s board of directors has approved capital spending(1) for the remainder of 2023 of $30 to $32 million to drill, complete, equip and tie-in an additional 17 (17.0 net) multi-lateral development / step-out wells at Figure Lake and $4 to $6 million to drill up to 3 (2.0 net) multi-lateral Northern exploratory wells. Forecast drilling activities are expected to be funded from adjusted funds flow and the Company’s credit facility.
Factoring in type curve performance from the recent and future drilling program at Figure Lake, production sales volumes are expected to average between 2,900 to 3,100 bbl/d for 2023. Forecast production incorporates the future sales volume impact of the reduced working interest at Marten Hills effective May 1, 2023 related to reaching full payout during the first quarter, and assumes no contribution from the Northern Exploration Program wells that were shut-in due to access for the remainder of 2023.