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Press release from CNW Group

Second Wave Petroleum Inc. Achieves Corporate Production of 3,000 boe/d with Judy Creek Beaverhill Lake Drilling Success

Friday, December 16, 2011

Second Wave Petroleum Inc. Achieves Corporate Production of 3,000 boe/d with Judy Creek Beaverhill Lake Drilling Success08:00 EST Friday, December 16, 2011Toronto Stock Exchange: SCS83,119,296  Common SharesCALGARY, Dec. 16, 2011 /CNW/ - Second Wave Petroleum Inc. (TSX:SCS) ("Second Wave" or the "Company") is pleased to announce that corporate production has reached approximately 3,000 boe/d (80% oil and natural gas liquids) in mid-December with continued success on its Judy Creek Beaverhill Lake light oil play.HighlightsCorporate production based on field estimates has reached approximately 3,000 boe/d (80% oil and natural gas liquids) in mid-December with its Judy Creek Beaverhill Lake production increasing to approximately 2,000 boe/d (90% light oil).The Company has drilled, completed and brought on production 13 (6.4 net) Beaverhill Lake horizontal oil wells in 2011 with an average production rate over the first 30-day test period exceeding 650 bbl/d per well.  The Company built three separate Beaverhill Lake batteries in Judy Creek in the fourth quarter and is positioned to internally process all of its Beaverhill Lake emulsion by the end of the year, which is expected to reduce operating costs on its Beaverhill Lake production base.Operations UpdateThrough the fourth quarter the Company has continued operating three drilling rigs on its Beaverhill Lake light oil drilling program in Judy Creek. The Company has spud its 20th(9.2 net) Beaverhill Lake horizontal well in 2011 with 13.0 (6.4 net) wells completed and on production, 4.0 (1.6 net) wells standing waiting on completions, and three (1.2 net) wells currently drilling. The Company expects to complete 1.0 (0.4 net) additional Beaverhill Lake horizontal oil well in 2011 prior to year end and exit the year with 3.0 (1.2 net) horizontal oil wells standing awaiting completion.Gross light oil test rates and current production rates on the Company's 2011 Beaverhill Lake wells are noted in the table below.  WorkingInterest StatusInitial 30 Day GrossOil Production Rate(bbl/d)InitialProductionDateCurrent Gross OilRate as of Dec. 14,2011(bbl/d)GrossCumulativeProduction(bbl)100/15-36-063-10W540%Pumping1,0803/3/201123066,000100/08-14-063-09W540%Pumping307/3/2011205,000100/01-28-063-09W540%Pumping4447/22/20119523,000100/16-13-063-10W540%Pumping4008/3/201116020,000102/01-05-064-09W540%Pumping6508/12/201124033,000100/04-06-064-09W540%Pumpng9908/23/201121037,000100/12-16-063-09W540%Pumping3509/9/201116015,000100/13-16-064-09W5100%Pumping2109/29/20119010,000100/13-25-063-10W540%Flowing1,80010/7/2011*Shut-in75,000100/08-23-062-10W5100%Pumping10010/30/20111004,500100/05-13-063-10W540%Pumping1,800 - 13 days11/15/2011Equipping24,000100/03-36-063-10W540%Flowing1,800 - 15 days11/29/20111,00027,000100/13-35-063-10W540%Flowing1,500 - 5 days12/10/20111,4007,500* Well shut in for pressure build-up To date the results from the Company's drilling program has continued to exceed expectations with the estimated production rates from the first 13 wells averaging over 650 bbl/d over the first 30-day test period.The Company successfully completed 5.0 (2.6 net) Beaverhill Lake horizontal oil wells in the fourth quarter and expects to complete 1.0 (0.4 net) additional well prior to year end.  In the quarter the Company experienced operational difficulties during the stimulation of 2.0 (0.8 net) horizontal well bores, both of which required additional bottom hole remediation work prior to re-commencing the frac operation. The Company is planning to have both wells re-stimulated by the end of fourth quarter.  The re-stimulations of these two well bores will consume two additional scheduled frac dates, resulting in the Company completing a total of eight fracturing operations in the quarter to fully stimulate only six wells, and push the stimulation and first production from 2.0 (0.8 net) additional horizontal oil wells into the first quarter of 2012.  The delay in bringing on initial production from the two wells requiring re-stimulation will also negatively impact the Company's average production rate for the fourth quarter of 2012.  The Company anticipates exiting the year with 3.0 (1.2 net) Beaverhill Lake horizontal oil wells standing awaiting completion.With continued success on its Beaverhill Lake horizontal light oil drilling program in Judy Creek the Company's corporate production is estimated to have increased to approximately 3,000 boe/d (80% oil and natural gas liquids) in mid-December with its Beaverhill Lake production exceeding 2,000 boe/d (90% light oil). Depending on the timing and success of its remaining frac and testing operations in 2011, the Company estimates that its fourth quarter corporate production rates will average between 2,150 and 2,300 boe/d (80% oil and natural gas liquids).OutlookExiting 2011 the Company has gained considerable momentum in its Judy Creek Beaverhill Lake light oil drilling program. In 2012, Second Wave anticipates operating three to four Beaverhill Lake drilling rigs in Judy Creek and is well positioned to meet its previously disclosed 2012 average and exiting production guidance of 3,850 boe/d (80% oil and natural gas liquids) and 5,000 boe/d (80% oil and natural gas liquids), respectively. The Company will look to provide a further update on its drilling program in the first quarter of 2012.READER ADVISORIESBarrels of Oil Equivalent (BOEs).  The term BOE refers to barrel of oil equivalent, with natural gas converted to crude oil equivalent at a ratio of six thousand cubic feet to one barrel.  BOEs may be misleading, particularly if used in isolation.  A BOE conversion ratio of six mcf (six thousand cubic feet) to one bbl (one barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.Forward-Looking Statements.  This news release contains forward-looking statements as to the Company's internal projections, expectations and beliefs relating to future events or circumstances. Forward-looking statements are typically (but not necessarily) identified by words such as "anticipate", "believe", "budget", "estimate", "expect", "plan", "intend", "potential", "may", "will", "should" or similar words suggesting future outcomes. Although the Company believes that these forward-looking statements are reasonable, undue reliance should not be placed on them as they are subject to known and unknown risks and uncertainties, many of which are beyond the Company's control. Forward-looking statements are not guarantees of future outcomes. There can be no assurance that the plans, intentions or expectations contained in the forward-looking statements or upon which they are based will in fact occur or be realized, and actual results may differ from those expressed or implied in the forward-looking statements. The difference may be material.Second Wave is subject to the inherent risks associated with the exploration, development, exploitation and production of oil and gas. More particularly, material risk factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements contained in this news release include: adverse changes in commodity prices, interest rates or currency exchange rates; accessibility of capital when required and on acceptable terms; lower than expected production of crude oil and natural gas; production delays; lower than expected reserve volumes on the Company's properties; increased operating costs; ability to attract and retain qualified personnel or to secure drilling rigs and other services on acceptable terms; competition for labour, equipment and materials necessary to advance the Company's projects; unforeseen engineering, environmental or geological problems; ability to obtain all required regulatory approvals on a timely basis and on satisfactory terms; and changes in laws and governmental regulations (including with respect to taxes and royalties). This list is not exhaustive. Readers should also review the risk factors described in other documents filed by the Company from time to time with securities regulatory authorities in Canada, including its most recent annual information form, copies of which are available electronically at www.sedar.com and at www.secondwavepetroleum.com.Specific forward-looking statements contained in this news release include statements regarding: the Company's ability to internally process all of its Beaverhill Lake emulsion by the end of 2011 and the consequential reduction in operating costs; the number of wells expected to be completed in 2011 and standing awaiting completion at year end; the estimated production rate for the fourth quarter of 2011; and average and exiting production rates forecast for 2012.  In making such forward-looking statements, Second Wave has made various assumptions regarding, among other things: the accuracy of geological and geophysical data and interpretations of that data; future oil and natural gas prices; future capital requirements; future exchange rates; the accessibility and cost of capital (including credit); the Company's ability to economically produce oil and gas from its properties and the timing and cost to do so; and its ability to obtain qualified staff, equipment and supplies in a timely and cost-efficient manner.The forward-looking statements included herein are made as of the date of this news release and Second Wave undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by securities laws.    For further information: Contact:Colin B. Witwer, President and CEORandy Denecky, VP, Finance and CFO Second Wave Petroleum Inc. Calgary, Alberta, Canada Telephone: (403) 451-0165 Email: info@secondwavepetroleum.com Web:  www.secondwavepetroleum.com