The Two-Well Program at the Company's Core
Killam Property Was Completed Under Budget, with Initial Production
Results Expected to be Issued in Late September
CALGARY,
AB, Aug. 6, 2024 /CNW/ - Westgate Energy Inc.
("Westgate" or the "Company") (TSXV: WGT), a
high-growth junior exploration and production company targeting
untapped Mannville Stack medium and heavy oil resources in
East-Central Alberta and West Central Saskatchewan, confirms the
successful drilling of two wells as part of the initial portion of
our second half 2024 ("2H/24") drilling campaign. This
summer program (the "Program") consisted of two horizontal
multi-lateral oil wells drilled at the Company's core Killam
property in Eastern Alberta.
The Program's first well ("16-15") was successfully
drilled using a four-leg, open-hole horizontal design targeting the
Mannville Sparky Formation. The well was drilled in eight days from
spud to rig release, resulting in the drilling costs coming in
under budget, with a total of 5,056 metres of lateral length
drilled within the Sparky Formation. The 16-15 was subsequently
brought on production July
28th via an on-lease tie-in. The total field
estimate cost to drill, complete, equip and tie-in this well is
estimated to be $1.43 million. The
coming weeks of production represent the clean up period for the
16-15 as drilling fluids are recovered and the pumping parameters
optimized. Management expects the true productive capabilities of
this well will be evident approximately 45 days from the on-stream
date.
The Program's second well ("11-21") has been successfully
drilled as a six-leg, open-hole horizontal well, also targeting the
Mannville Sparky Formation, and was drilled from a new pad within
Westgate's Killam Field. The 11-21
was also drilled in eight days from spud to rig release, resulting
in this well also coming in under budget, with a total of 5,140
metres of lateral length drilled in the Sparky Formation. This well
is awaiting completion, equipping and a short pipeline tie-in for
solution gas and is anticipated to have an on-stream date of
approximately August 15th.
The total field estimate cost to drill the 11-21 is estimated to be
$1.17 million, with upcoming costs
related to completion, equipping and tie-in of the new pad
estimated at an incremental $0.46
million. The productive capabilities of this well are
expected to be observed approximately 45 days from the on-stream
date. Based on a successful result from the 11-21 well, the new pad
has been designed to accommodate additional follow-up wells.
Westgate anticipates releasing a report on the production rates
of these two new wells in late September. Success from the Program
will contribute to the Company's previously
communicated average 2H/24 production range of 350 to 400
boe/d[1]. A third well at the Company's Killam Field is planned for the fourth quarter
of this year, which is also expected to contribute to the
previously announced 2024 exit rate of 450-500
boe/d1.
Westgate's CEO, Dan Brown
commented, "We are pleased with the outcome of our two-well summer
program, highlighted by both wells coming in under budget due to
our team's excellent execution. We look forward to sharing the
initial production results in the coming months."
__________________________________
1 Production split is expected to be 70% crude
oil and natural gas liquids and 30% natural gas.
|
Westgate's Differentiated Strategy
Westgate is focused on the emerging Mannville Stack fairway
located in East-Central Alberta and West Central Saskatchewan. This
fairway is characterized by known accumulations of medium and heavy
oil which are being 'unlocked' via the application of innovative
drilling techniques that utilize multi-lateral horizontal drilling.
Applying these multi-lateral drilling techniques has yielded some
of the strongest oil well economics across Western Canada.
The management team and board of Westgate have extensive experience
building and leading successful energy companies in Canada. The collective successes of the
leadership group share common characteristics: a strategy of
targeting high-quality oil assets with large quantities of
oil-in-place, and driving growth through successful drilling as
well as strategic merger and acquisition opportunities. This proven
blueprint of delivering shareholder value will be foundational to
Westgate's strategy, positioning the Company as one of a select few
pure-play, high-growth, publicly-traded junior oil companies
focused on the Mannville Stack Fairway.
For more information, please visit www.westgateenergy.ca.
Abbreviations
bbl
|
barrel of
oil
|
boe
|
barrel of oil
equivalent
|
boe/d
|
barrel of oil
equivalent per day
|
Mcf
|
thousand cubic
feet
|
Reader Advisories
In this press release, all references to "$" are to Canadian
dollars.
This press release contains metrics commonly used in the oil
and gas industry. These oil and gas metrics do not have any
standardized meaning or standard methods of calculation and
therefore may not be comparable to similar measures presented by
other companies where similar terminology is used and should
therefore not be used to make comparisons. Boe may be
misleading, particularly if used in isolation. A boe conversion
ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
Notice regarding forward-looking statements:
This press release includes forward-looking statements
regarding Westgate and its business, which may include, but are not
limited to, the commencement of the Program, the drilling and
spudding of wells and timing thereof, the anticipated success of
the Program, the expected 2H/24 production range, expected
announcement of initial production results and timing thereof, the
business and growth prospects of Westgate, and the characteristics
of the Mannville Stack fairway and the unique position of Westgate
in respect thereof. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"is expected", "expects", "scheduled", "intends", "contemplates",
"anticipates", "believes", "proposes" or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. The forward-looking
statements included in this press release are based on management's
current expectations and assumptions, including, but not limited
to, the successful drilling of the two planned wells and production
therefrom, the expected time to drill, complete, equip and tie-in
each of the two planned wells, the Company's ability to execute its
business strategy and market conditions. Although the Company
believes that the expectations and assumptions reflected in such
forward-looking information are reasonable, they may prove to be
incorrect. Forward-looking statements involve significant known and
unknown risks and uncertainties. A number of factors could cause
actual results to differ materially from those anticipated by the
Company, including but not limited to, an increase in the time to
drill the two planned wells and bring on to production, production
from wells being less than anticipated, decreases in the price of
oil and natural gas and changes in market conditions. Moreover,
exploration, appraisal, and development of oil and natural gas
reserves are speculative activities and involve a degree of risk.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended. No
forward-looking statement can be guaranteed. Except as required by
applicable securities laws, forward-looking statements speak only
as of the date on which they are made and the Company undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events,
or otherwise, other than as required by law.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
SOURCE Westgate Energy Inc.