Business
Glacier Production Exceeds 50 mmcf/d with the Commissioning of Advantage's New Gas Plant
Glacier Production Exceeds 50 mmcf/d with the Commissioning of Advantage's New Gas Plant
About this update from Advantage Energy Ltd
[{"type":"text","content":"\n\n\n\nCALGARY, Apr. 19, 2010 (Canada NewsWire Group) -- /CNW/ -- Advantage Oil and Gas Ltd. (\"Advantage\" or \"the Company\") is pleased to announce that our new 100% working interest gas plant at Glacier (\"Glacier gas plant\") was brought on-stream ahead of schedule with production rates exceeding 50 mmcf/d (8,300 boe/d). This milestone represents another key step in the development of our significant Montney reserves and resource potential at Glacier.Glacier Production Exceeds 50 mmcf/d (8,300 boe/d)- Construction of new facilities and gas gathering system expansionswere completed ahead of schedule and on-budget leading to an earlierthan anticipated commissioning of Advantage's new 100% W.I. gas plantin March 2010. The new Glacier gas plant is now operating atthroughput rates between 50 to 55 mmcf/d.- Our current production capability at Glacier exceeds 90 mmcf/d whichincludes all new wells tested to-date in both the Upper and LowerMontney zones. The plant is currently producing at its maximumcapacity with a total of 19 net (28 gross) Montney wells onproduction. An additional 8 net (8 gross) wells, with combinedproduction capability of 31 mmcf/d are fully equipped and will bebrought on-production in the future to maintain our facilities atcapacity. Five net (5 gross) additional Montney wells which weredrilled in Q1 2010 will be completed and equipped for productionfollowing spring break-up. The amount of excess field productioncapability above our current plant capacity is a result of oursuccessful 2009 drilling program which demonstrated well test ratesthat exceeded expectations and proved up a large portion of ourundrilled acreage at Glacier.- The completion of our Glacier gas plant will eliminate third partyprocessing fees and is anticipated to reduce operating costs atGlacier from $8.25/boe to approximately $2.75/boe which willsignificantly improve the netbacks realized for our Montney gasproduction.- A new TCPL sales gas pipeline connection was also completed and salesgas is now being delivered directly to TCPL from our Glacier gasplant.- We have also retained the option to direct additional volumes to theWembley gas plant which provides for operational flexibility.Planning and Evaluation of Future Growth Underway- We will provide additional guidance and growth plans for Glacier onor about mid-year 2010. Incorporation...