Traverse Energy Ltd. ("Traverse" or "the Company") (TSX VENTURE:TVL) presents financial and operating results for the year ended December 31, 2016.
Traverse's capital program in 2016 was reduced in response to the continuing weak commodity price environment. Two Banff test wells were drilled (100%) resulting in one oil well at Watts and one abandoned well in the west Coyote area. A water disposal facility at Coyote was completed and commissioned, reducing current water disposal costs and improving economics for future development. The Coyote battery tank vent piping system was also upgraded to allow for tank vapour recovery. Beginning in the second quarter of 2016, Traverse implemented a program of recompletions and workovers to optimize production.
In 2016 Traverse continued to maintain its acreage holdings in East Central Alberta, purchasing approximately 41,400 net undeveloped acres (100%) during the year. Undeveloped land holdings in Alberta at December 31, 2016 totalled 181,600 gross (180,700 net) acres. Traverse continues to evaluate existing and acquired lands for additional prospects. At December 31, 2016, the Corporation had working capital of $1.7 million and an undrawn credit facility of $7 million. The initial exploration and development program for 2017 has been approved at $14 million.
In the first quarter of 2017 Traverse drilled 3 wells (100%) resulting in one oil well at Coyote and 2 potential oil wells at Watts and west Coyote. The horizontal oil well at Coyote was tied into existing infrastructure in February and has averaged 300 BOE/day comprised of 250 bbls/day oil and 320 mcf/day sales gas in the first 40 days of production. The well is currently being equipped with artificial lift. The exploratory well at west Coyote is being production tested. Based on the initial production tests the well appears to be uneconomic as a single well tie in. Additional drilling in the area is planned later in the year. After break up, the potential oil well at Watts will be evaluated for productivity.
At Watts, an oil well drilled in 2016 was placed on production in early February 2017 and has averaged 125 BOE/day comprised of 85 bbls/day oil and 230 mcf/day sales gas in its first 60 days of production. A gas well tied in during the fourth quarter of 2016 was placed on production in early February. The well has since been recompleted in a Mannville zone and is waiting on services to fracture treat the zone after break up.
Further details on the Company including the 2016 year end audited financial statements, the related management's discussion and analysis and Annual Information Form are available on the Company's website (www.traverseenergy.com) and SEDAR.
SOURCE: Traverse Energy Ltd.
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