RMP Energy announces Gold Creek drilling results

RMP Energy Inc. has provided drilling and completion results from its Gold Creek exploration well. RMP's strategy during this period of low commodity prices has been to maintain a strong balance sheet while adding to the Company's exploration and development inventory. The Company has strategically shifted its capital allocation towards asset expansion and enhancement of long-term growth prospects while temporarily scaling-back its pace of drilling and moderating near-term production growth objectives.

In 1Q16, RMP completed an exploration well (3-22-68-03W6), with flow test results confirming the existence of a Montney oil pool. The cost incurred to drill and complete this 100% working interest well was approximately US$4.3 million. The 3-22 exploration well was drilled to a total measured distance of 4233 m at a true vertical depth of 2197 m.

Completion operations encompassed a 25 stage, 1250 t, 31 000 bbl hybrid slick-water fracture stimulation (average 50 t/stage). Initial flow-back results have demonstrated the Montney reservoir to be oil bearing and gas charged, providing geological confidence on the prospectivity of the Montney formation in the Gold Creek area. The 3-22 well clean-up and production flow test was for an aggregate 118 hour period (approximately 5 days), truncated due to regulatory gas flaring limitations. During this period, the 3-22 well achieved a maximum flow rate of 600 bbls/d of light oil and 7.5 million ft3/d of gas. During the production flow test of 35 hours, through smaller-diameter production tubing, the 3-22 well flowed an average of 200 bbls/d of light oil and 4.4 million ft3/d of gas, for an oil equivalent rate of 930 boe/d. At the end of the production test, the 3-22 well flowed and tested at approximately 300 bbls/d of 40 degree API crude oil and 5.0 million ft3/d of associated sweet solution gas for a total of 1130 boe/d with a final bottom hole flowing pressure of approximately 17 000 kPa. Additionally, the expected NGL yield on the raw solution gas is approximately 20 bbls/million ft3. After the flow test, the well was shut-in and the reservoir pressure was extrapolated to be 20 500 kPa, which indicates a normally-pressured Montney reservoir. Please refer to important Reader Advisories at the end of this news release.

RMP plans to install an 11 km gathering line, connecting the 3-22 well to an existing multi-well battery facility and compressor station. The 3-22 well tie-in operation, which requires frozen surface ground conditions, will be undertaken this winter with the well anticipated to be on-stream in early-2017. Preliminary estimated total proved plus probable reserves resulting from the successful completion of the 3-22 well, based on the Company's internal evaluation prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities, aggregate to approximately 3.1 million boe (including 900 Mbbls of light oil), effective 1 May 2016. The internally-estimated reserves include the 3-22 well as a proved developed non-producing well in addition to four (4.0 net) undrilled offset well locations (two proved undeveloped and two probable undeveloped).

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/30052016/rmp-energy-announces-gold-creek-drilling-results-660/