Prairie Provident Resources Inc. ("Prairie Provident", "PPR" or the "Company") (TSX:PPR) is pleased to provide an operational update including successful results from the first of the Company's four wells drilled and completed in Wheatland to date, as well as well flow test results for all four wells.
During the first three months of 2017, PPR drilled four wells in Wheatland targeting oil zones in the Ellerslie formation. Due to delayed scheduling of frac crews coupled with our conscious decision to manage costs, completion of these four wells was deferred until late April and early May, and began flowing back through May.
One well in the Wayne Q1 drill program in Wheatland was tied-in and producing to sales in mid-May. This well has been on production for 20 days and is currently producing at a total fluid rate (including recovered load fluid and formation water) of approximately 500 bbls/day (60% oil) plus 0.5 MMcf/d of natural gas in initial production, or approximately 300 bbls/d of oil and 85 boe/d of natural gas, which has exceeded PPR's expectations.
The two additional wells in Wayne have flowed back at encouraging rates showing low gas volumes with increasing oil cuts, consistent with the trend demonstrated by the Wayne 1 well. The Wayne 2 and 3 wells are expected to be tied-in to sales infrastructure by the end of June, 2017.
The fourth Wheatland well was drilled over PPR's sizeable land base of 30 net sections at Entice and flowed gas at strong production test rates of 2.8 MMcf/d at 700 psi flowing casing pressure. The Entice well is expected to be tied-in to available third-party area infrastructure by July 15th, 2017, providing continued support for PPR's development across this area.
The Company cautions that test results and initial production rates are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery. Actual results will differ from those realized during testing or an initial short-term production period, and the difference may be material.
The Company is pleased with the results of our first half capital program, particularly given our intention to target higher-value, oil and liquids weighted locations, and the significant opportunity provided by our sizeable asset base. For the second half of 2017, PPR is planning additional drilling at Wheatland and Princess depending on commodity prices, with drilling expected to recommence in July. Consistent with our commitment to manage the balance sheet, the Company will remain focused on generating positive returns through prudent capital management by scaling our 2017 budget to reflect prevailing commodity prices.
ABOUT PRAIRIE PROVIDENT:
Prairie Provident is a Calgary-based company engaged in the exploration and development of oil and natural gas properties in Alberta. The Company's strategy is to grow organically in combination with accretive acquisitions of conventional oil prospects, which can be efficiently developed. Prairie Provident's operations are primarily focused at Wheatland and Princess in Southern Alberta targeting the Ellerslie and the Lithic Glauc formations, along with an early stage waterflood project at Evi in the Peace River Arch. Prairie Provident protects its balance sheet through an active hedging program and manages risk by allocating capital to opportunities offering maximum shareholder returns.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.