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Journey Energy Inc. Announces New Pool Discovery at Windfall
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About this update from Journey Energy, Inc.
[{"type":"text","content":"\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./\n\n\n\nCALGARY, Sept. 4, 2014 /CNW/ - Journey Energy Inc. (JOY – TSX) (\"Journey\" or the \"Company\") is pleased to provide an update on the extended test results for a new pool discovery at Windfall. \n\nAs planned, Journey is currently executing the most active capital program in our history with multiple well programs in Matziwin, Herronton, Pembina and Countess along with single well drills in Manola and Windfall.  This program has resulted in a 100% success rate and is forecasted to result in record exit production in excess of 11,200 boe/d.\n\nWINDFALL UPDATE\n\nJourney Windfall 10-10-60-14W5 (100% WI) horizontal well was completed over 18 intervals in the Beaverhill Lake formation and production tested from August 9th to 22nd inclusive.  During the 302 hour extended test, the well produced 5,416 bbl of 44o API oil and 30.6 mmscf of raw gas.  Final flow rates for the last 24 hours of the test were 320 bbl/d of oil, 2.0 mmscf/d of raw gas, and 250 bbl/d of water at a flowing pressure of 300 psi.  The produced raw gas was liquids rich and recoveries of approximately 50 bbls of natural gas liquids (NGL's) per mmscf of raw gas were calculated from the gas analysis. If processed through a facility, this test rate equates to approximately 700 boe/d (60% oil and NGL's).\n\nWater cuts followed a declining trend and decreased throughout the test from 100% to a final water cut of 44%.  The gas analysis showed 2.4% CO2 and 0.9% H2S.  Given the H2S concentration and the lack of acid gas processing on the north side of the Athabasca River, Journey is currently reviewing natural gas tie-in options for the well and a long term development plan for the resource.  As a result, the Windfall well is not included in our 2014 or 2015 production guidance.  Further capital requirements and added production volumes for Windfall will be determined once the development plan is complete, and will be incremental to our 2015 guidance.\n\nDrilling of the 10-10 well will earn and validate 22 sections of land (100% WI) and the pool is thought to extend over the majority of these sections.  This play represents a potentially significant productive resource for the Company, and there are no reserves currentl...