Delphi is now singularly focused on its Bigstone assets where it holds 139.5 gross sections (118.1net) of Montney rights and 81.5 gross sections (60.0 net) of contiguous shallow Cretaceous rights.
The Bigstone Montney now represents 87% of corporate production.
While the oil and gas industry remains in a very challenging environment, Delphi’s accomplishments during 2015 have transformed the Company, positioning it to successfully navigate through this prolonged low commodity price environment. Several of these accomplishments include:
The company’s fifth well of the 2015 programme located at 14-24-60-23W5 (0.83 net),commenced production in late December.
Delphi has also completed the drilling of its sixth horizontal Montney well of 2015 at 14-27-60-23W5. Completion operations, utilising the Company’s newly optimised slickwater frack design over a 37 stage liner, are scheduled to commence in January 2016.
The first well of Delphi’s 2016 capital programme in the Montney formation at 13-21-60-23W5 (“13-21”) in the Bigstone area has commenced drilling.The 13-21 well is the first of two wells expected to be drilled in Bigstone this winter.
On December 1, 2015, the company began transporting most of its natural gas under its Alliance full path firm service agreement, eliminating exposure to production curtailments and Alberta based natural gas price weakness.
Delphi estimates US$6.0 -US$7.0 million in reduced operating costs in 2016 over 2015, as the more efficient Montney production replaces the lower netback properties disposed of in 2015. In addition, with the disposition of the lower netback properties, the Company has reduced its staff from 36 to 24 (34%), resulting in expected general and administrative savings of US$2.0 -US$2.5 million
Reduced capital costs and lower operating costs, combined with a superior asset has enabled the Company to continue to deploy capital to its Montney play with a high return on investment.
Adapted from a press release by Louise Mulhall
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/04012016/delphi-energy-provides-operational-update/