Spartan remained active in the field throughout the third quarter of 2017, with three rigs continuing to operate across its southeast Saskatchewan asset base. Third quarter activity levels have been in line with budget and included the spudding of 32 (22.2 net) open-hole wells (including eight (3.2 net) Ratcliffe wells), six (5.4 net) frac Midale wells and one (0.4 net) Torquay well. The company brought a total of 35 (26.5 net) wells on production in the quarter and had an additional 14 (8.7) net wells spud but not on production at the end of the quarter.
In its open-hole Frobisher/Alida/Tilston plays, Spartan brought 18 (14.3 net) wells on production in the quarter. These locations were drilled across its extensive asset base, with wells brought on in its core Greater Queensdale and Winmore areas, as well as in the Wordsworth, Carlyle, Willmar, Viewfield and Browning areas. A number of these locations targeted new pools or pool extensions, allowing Spartan to continue to organically expand its drilling inventory in key areas. Average results from its open-hole wells have continued to exceed its internal type curves, with initial 30 day production (“IP30”) rates for open-hole wells brought on production in 2017 outperforming its unrisked type curve by approximately 28 per cent.
Spartan has continued to leverage its experience in southeast Saskatchewan to improve drill times for its open-hole wells. The company delivered spud to rig release times as low as four days in the third quarter, down from an average of eight days when Spartan acquired the assets in 2014. Overall drilling costs are tracking its budget, and Spartan’s combination of low individual well costs and production outperformance continues to produce top tier capital efficiencies.
Unconventional plays
On its frac Midale acreage, Spartan drilled six (5.4 net) wells in the third quarter, bringing its total to 22 (17.9 net) wells drilled year to date. Third quarter drilling consisted of two (2.0 net) wells at Alameda, two (2.0 net) wells at Pinto and two (1.4 net) wells at Elcott. Its frac Midale wells have delivered superior results in 2017, with average initial 90 day oil production rates approximately 39 per cent above its internal type curve. Spartan also drilled and completed its first operated Torquay well in the third quarter, which was drilled on its Oungre acreage. The well was brought on production in September and is currently in clean-up stage. Spartan intends to drill one (1.0 net) additional Torquay well in the fourth quarter of 2017.
