Planned capital spending between $1.5 and $1.6 billion
Seven Generations Energy Ltd.’s first quarter production averaged 153,100 boe/d, up 73 per cent and setting a quarterly record, according to a press release.
With record quarterly production and stronger commodity prices, funds from operations set a record at $272.3 million or 75 cents per share, an increase of 146 and 88 per cent compared to the first quarter of 2016.
“Production in the first quarter was 16 percent higher than the fourth quarter of 2016 and consistent with our budget. We remain on track to deliver full-year production in line with our 2017 guidance of 180,000 to 190,000 boe/d,” said said Marty Proctor, 7G’s CEO.
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Experimental 60-stage completions herald promising production rates, 7G completed eight wells in the first quarter on a pad located on the boundary between Nest 1 and Nest 2 type curve areas.
The wells had an average lateral length of approximately 2,600 metres and six were completed with 40 fracture stages. On two of the wells, 7G experimented with a higher intensity completion design with 60 fracture stages.
“Although only early-time data are available, we are encouraged by the wells’ performance. The condensate production from this pad is outperforming 7G’s 2016 Nest 2 condensate type curve. In the first 30 days, condensate production from the 40-stage wells is about 25 per cent higher, while the 60-stage well production is up about 50 percent when compared to our 2016 Nest 2 condensate type curve.” said Glen Nevokshonoff, 7G’s Senior Vice President, Operations.
First quarter capital investment was $362.3 million, consistent with planned 2017 capital investments of between $1.5 billion and $1.6 billion.
“Our continued focus on operating efficiencies and innovation is yielding strong financial and operating results. We had a robust start to the year, running 13 drilling rigs and two pressure pumping spreads for most of the first quarter, and had 78 Nest wells in various stages of development at the end of March,” said Proctor.
Although the entire industry, including 7G, endured cost pressures due to heightened activity in the Montney, 7G’s average drilling cost per lateral metre fell by 10 per cent compared to the first quarter of 2016.