Spirit River
Wilrich IRRs near 30%
May 7, 2015 |
Horizontal Montney
Elmworth RORs 51%
April 29, 2015 |
Belly River Oil
Pembina RORs 30%
April 7, 2015 |
Viking Oil
Saskatchewan RORs 78%
May 8, 2015 |
Bonavista Energy holds 1.3 million net acres in its two core areas, the Deep Basin and West-Central Alberta. Within the Wilrich area, Bonavista has achieved an 84% production CAGR since Q4 2012 from the Spirit River formation, where it is currently producing 12,000 boe/d. Type curves are running at an impressive 790 MBOE EUR with a capex cost of $5.1 million. With 175 identified locations, the area is getting one-third of 2015’s budget. With an expected 20% cost reduction, IRRs at $2.67 gas are 34% and reach nearly 60% at $3.50. |
NuVista Energy has an excellent balance sheet and is increasing its focus on condensate-rich Montney wells in Alberta. NuVista is in a great neighborhood where the industry is currently running 30 rigs. Within its Elmworth development block, NuVista has two rigs running and type curves have increased from 4.4 Bcf to 6.0 Bcf. In NuVista’s own words, “top plays win at any price.” This slide shows the improvement in Montney IP30 rates and operational improvements which will surely continue to enhance existing economics. |
Boulder Exploration is expected to begin trading today (May 21) after being spun out of DeeThree Exploration. Boulder’s focus is the Belly River in west-central Alberta and the Peace River Arch area. Boulder is a growth-oriented company with 8,000 boe/d in the heart of the Pembina/Brazeau oil fields. Boulder launches with 400+ locations representing a 20-year inventory. With current well costs of $4.5 million and EURs of 320 Mboe (80% oil/liquids), RORs approach 30% at $60 oil and have substantial leverage to a rising oil price. |
Whitecap Resources has a sustainable light oil growth and income platform from a current inventory of 3,066 development locations. The company is guiding an impressive 22% growth rate in 2015 to 39,700 boe/d. This year, the Viking oil play in Saskatchewan is getting 39% of the budget, more than any other play in Whitecap’s portfolio. New well netbacks of $36/boe are projected for this play. The Lucky Area boasts RORs up to 78% with finding costs as low as $11.22/boe. Wells cost $0.8 million with EURs up to 75 Mboe. IP30s averaged 118 boe/d in 2014. |
