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Coelacanth Energy Inc. Announces Capital Budget & Operations Update
Calgary, Alberta--(Newsfile Corp. - March 7, 2024) - Coelacanth Energy Inc. (TSXV: CEI) (" Coel...
About this update from Coelacanth Energy, Inc.
[{"type":"text","content":"Coelacanth Energy Inc. Announces Capital Budget & Operations UpdateCalgary, Alberta--(Newsfile Corp. - March 7, 2024) - Coelacanth Energy Inc. (TSXV: CEI) (\"Coelacanth\" or the \"Company\") announces that its Board of Directors has approved a capital budget (\"Budget\") of up to $128 million to be invested in 2024 and Q1 2025. Substantially all of the Budget will be spent at Two Rivers where Coelacanth is developing its large Montney acreage position. Approximately $80 million is to be invested in infrastructure at Two Rivers East where the Company had previously announced its successful first pad (see below) with drilling and completions estimated at $45 million including the drilling and completion of 4 additional Lower Montney wells on its 5-19 Pad plus complete a previously drilled Upper Montney well on the 5-19 Pad. The infrastructure is anticipated to be completed for April 1, 2025, at which point Coelacanth will be able to produce a total of 10 wells from the 5-19 Pad (5 current wells and 5 new budgeted wells).TWO RIVERS EASTThe Budget includes approximately $50 million for a new battery facility (\"Facility\") at Two Rivers East designed for gas compression/dehydration, oil treating and water handling, plus $20 million for gathering and sales lines to connect from the 5-19 Pad through the Facility to a mid-stream gathering line. Manufacturing of components for the Facility will commence shortly with in-field construction for both the Facility and pipelines scheduled for Q4 2024 and Q1 2025. The project is anchored by the Lower Montney but has additional potential upside in both the Upper Montney and Basal Montney. As previous released, the average rate achieved for the 3 Lower Montney wells was 1,338 boe/d per well comprised of 729 bbls/d of 39 API light sweet oil and 3.7 mmcf/d of liquids-rich gas. The rates per well were similar as outlined in the table below:WellOil - bbls/dGas - mmcf/dTotal - boe/d% Light OilC5-198183.21,34561D5-195274.21,22243E5-198413.61,44858Average7293.71,33854 Of the 10 wells anticipated to come on-stream in April 2025, 8 are Lower Montney wells, 1 is an Upper Montney well, and 1 is a Basal Montney well. TWO RIVERS WESTCoelacanth had announced in October 2023 that it had completed the 2 Upper Montney wells on its 10-08 Pad at Two Rivers West and placed the first well (C10-08) on production...