Loading price data...
OilMonster

November 21, 2017

Marquee Energy Ltd. Announces Third Quarter 2017 Financial and Operating Results and Provides Operational and Corporate Update

Marquee Energy Ltd. ("Marquee" or the "Company") (TSXV: "MQX") announces its third quarter operational and financial results for the three and nine months ended September 30, 2017.
Marquee Energy Ltd. Announces Third Quarter 2017 Financial and Operating Results and Provides Operational and Corporate Update

CALGARY- Marquee Energy Ltd. ("Marquee" or the "Company") (TSXV: "MQX") announces its third quarter operational and financial results for the three and nine months ended September 30, 2017. The Company's financial statements and Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2017 are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and on Marquee's website at www.marquee-energy.com.

 

THIRD QUARTER 2017 HIGHLIGHTS

  • Drilled and completed two horizontal development wells and two horizontal exploration wells at Michichi. Over the last seven days, the two development wells have averaged 248 boe/d per well, approximately 30% above Marquee's type well forecasts; and
  • Produced an average of 2,791 boe/d (44% oil and liquids), an increase of 19 boe/d (1%) over the third quarter of 2016.

OPERATIONAL UPDATE
Marquee's field estimated production averaged 3,050 boe/d (50% oil and liquids) during the first 19 days of November. The four horizontal wells drilled in the third quarter of 2017 incorporated a monobore design to control costs, while completing the wells with a 47% increase to fracture density. Marquee was able to reduce the average days from spud to rig release to eight days from 14 days, and fractured each well successfully in late September with approximately 460 tonnes of sand per well, an increase of 40% over the previous design.

Marquee drilled two development wells on the southern portion of the defined Banff development fairway at Michichi. The two wells, brought on production in early October, have averaged 225 boe/d per well (151 barrels per day ("bbl/d") of oil and liquids, 440 thousand cubic feet per day ("mcf/d") of gas) over the last 30 days and 248 boe/d per well (165 bbl/d, 500 mcf/d gas) over the last seven days. The recent production is approximately 30% above Marquee's type well forecasts on a BOE basis. With the increased fracture density and sand volumes, average drilling and completion costs for the two development wells were $1.6 million per well. Marquee is encouraged with these early production results in consideration of its modified drilling and completion design. The wells have recovered approximately 30% of the total load fluid to date and continue to clean up.

Marquee's two exploratory wells were drilled on a prospective Banff trend west of the current Michichi development fairway to satisfy the Company's 2017 flow-through share expenditure commitment. These wells continue to produce to test facilities and the Company continues to evaluate their potential.

CORPORATE UPDATE AND OUTLOOK
During the third quarter of 2017, commodity prices faced downward pressure, resulting in the decision to scale back the Company's second half of 2017 drilling program from six wells to four. With this reduced activity, the Company is projecting to be at the lower end of the previously announced corporate exit rate of 3,000 to 3,300 boe/d. Along with this, the second half 2017 capital spending forecast has been reduced from $15 million to $11 million.

With the commodity price improvement in the latter half of October 2017, the Company has been actively layering in hedges to support its balance sheet and position itself to be active in the first quarter of 2018. The Company's Board of Directors has approved a five-horizontal well development drilling program at Michichi, with $9.7 million of capital committed for the first half of 2018. Drilling is expected to begin in December 2017 to mitigate potential service equipment shortages.

Published Company
OIL MONSTER Newsletter
Subscribe to OM mailing list and get updates to your inbox