CALGARY, ALBERTA – November 17, 2014 – Canadian International Oil Corp. (“CIOC” or the “Company”) is pleased to provide an operational update on the Company’s Duvernay activity as well as a significant increase in reserves as a result of continued success in the liquids-rich Montney play.
- Peak 24-hour production rate of 1,528 Boe/d from the 13-01 Duvernay horizontal pilot well comprised of 1,446 bbls/d of oil and 494 Mcf/d of gas.
- Establishing regional play continuity with the drilling of an additional six Duvernay vertical test wells
- Increased proved plus probable reserves (“2P”) by 125% to 57.1 MMBoe and total proved reserves (“1P”) by 136% to 36.7 MMBoe, as of September 30, 2014
- Before tax net present value discounted at 10% of 2P reserves increased by 142% to $744mm
CIOC has commenced a Duvernay drilling and pilot program in the Simonette, West Ante Creek and Karr areas as the Company continues to progressively de-risk its extensive land base with the drilling of vertical strat / core wells and a horizontal pilot.
CIOC’s land base in the Duvernay fairway is proving to be highly prospective as the majority of the Company’s acreage lies within the high pressure condensate window with strong net to gross ratios.
Scott Sobie, President & CEO stated, “We are extremely pleased that our first horizontal Duvernay Pilot well has proved our technical assumptions on the viability of the liquids-rich Duvernay fairway moving West of the Kaybob area. The result provides us with an additional contiguous development horizon over a significant acreage base that complements the robust Montney development potential on our lands.”
CIOC’s Simonette 13-01 well (13-01-64-26W5) encountered an over pressured Duvernay pay zone
(>19 Kpa/m gradient) within the mature oil window. The well was successfully stimulated along 1,182 meters of horizontal lateral.
13-01 had a peak 24-hour average rate of 1,528 Boe/d consisting of 1,446 bbl/d of 42 degree API crude oil and 494 Mcf/d of natural gas at a restricted flowing pressure of approximately 27 Mpa. The well has recently been tied-in and is currently on production and will continue to be produced at a restricted oil rate for reservoir management purposes. During the last seven days of production, the well averaged a restricted rate of 912 Boe/d consisting of 828 bbl/d of oil and 506 Mcf/d of natural gas.
The Company is very encouraged with this test given that the completed interval was only 1182m and future development wells are anticipated to have over 1500 m of stimulated lateral.
Duvernay Land Update
The Company expects to exit 2014 with over 199,000 net Duvernay acres (100% working interest) and 224,000 net Montney acres.
CIOC’s reserves were evaluated by independent reserves evaluator McDaniel & Associates Consultants Ltd. (“McDaniel”) with an effective date of September 30, 2014 and a preparation date of
November 5, 2014. The evaluation was prepared in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
As of the effective date of September 30, 2014, McDaniel recognized Total Proved Reserves of 36.7 MMboe (31 MMboe net of royalties) and 57.1 MMboe gross (45.9 MMboe net of royalties) of Total Proved Plus Probable Reserves, up 136% and 125%, respectively, from the December 31, 2013 reserves evaluation which was also performed by McDaniel.
The corresponding before tax net present values discounted at ten percent are $400.1mm for Total Proved Reserves and $743.9mm for Total Proved Plus Probable Reserves, up 163% and 142%, respectively, from the December 31, 2013 reserves evaluation.