Crescent Point Energy continued to acquire properties and to grow their production levels of light and medium oil and natural gas in the first quarter of 2011.
Crescent Point Energy continued to acquire properties and to grow their production levels of light and medium oil and natural gas in the first quarter of 2011.
Production in the first quarter grew by eight per cent over the fourth quarter of 2010, as the company produced an average of 75,574 barrels of oil equivalent per day. Of this amount, 90 per cent was weighted as light and medium crude oil, which is a 35 per cent production increase over the first quarter of 2010.
Also in this quarter, Crescent Point drilled 146 horizontal oil wells, or 111.5 net, with a 100-per-cent success rate. The company spent $73.8 million on land and facilities for total capital expenditures of $321.4 million.
In southeast Saskatchewan specifically, Crescent Point drilled 98 (or 81.9 net) oil wells with a 100-per-cent success rate. Of these, 84 (or 75.7 net) wells were horizontal wells in the Bakken light oil resource play. The majority of the Bakken wells drilled during this quarter were completed using cemented liner fracture stimulations, and the rest used mechanical packer fracture stimulations.
The company expects the spring breakup to be wetter than normal, lasting as long as three months instead of the traditional six weeks; therefore the company has forecast lower production levels on the second quarter than in the first quarter. They are on track to see an annual guidance of 72,500 boe/d, with exit production of more than 75,000 boe/d. During the first quarter, Crescent Point converted six Bakken wells to water injection wells as part of their expansion of water flood in the Viewfield Bakken play. Approximately 400 boe/d was shut in to facilitate the conversions; the company plans to convert another 19 wells during the balance of 2011.
Production from the waterflood has continued to exceed expectations. Water injection into three of the injection wells began during the first quarter, and the remaining three are expected to start in the second quarter following spring breakup.
Construction on the Viewfield gas plant continued during the first quarter; this expansion project is expected to raise inlet capacity to 30 mmcf per day from 21 mmcf. This expansion is on track to be completed by the fourth quarter of 2011. The company also began construction of an additional 100,000 barrels of field storage capacity, and this is expected to be operational by the third quarter this year.
Several pipeline crews were added to tie in additional wells and reduce the impact of the road bans. Altogether the company completed the construction of 122 km of pipeline-gathering systems in the Viewfield Bakken area, tying in 75 oil wells.
In addition to the Bakken well, the company also participated in the drilling of 14 (or 6.2 net) conventional horizontal oil wells in southeast Saskatchewan, of which four were operated.
