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Kelt Will Postpone Start-Up of New Natural Gas Wells to Q4 2024, Expects to Exit 2024 with Production in the 45,000 to 50,000 BOE per Day Range
Calgary, Alberta--(Newsfile Corp. - July 5, 2024) - Kelt Exploration Ltd. (TSX: KEL) ("Kelt" or t...
About this update from Kelt Exploration Ltd.
[{"type":"text","content":"\nKelt Will Postpone Start-Up of New Natural Gas Wells to Q4 2024, Expects to Exit 2024 with Production in the 45,000 to 50,000 BOE per Day RangeCalgary, Alberta--(Newsfile Corp. - July 5, 2024) - Kelt Exploration Ltd. (TSX: KEL) (\"Kelt\" or the \"Company\") is providing an operations update and changes to its 2024 guidance. Due to the current higher than average natural gas storage inventories in both the United States and Canada, current natural gas prices have been weak at North American pricing point hubs; especially at AECO and Station 2 where gas prices have dipped below $1.00/GJ. Kelt has elected to defer the start-up of certain gassier wells in its drilling portfolio to November/December 2024. Winter gas future strip prices are currently bid at levels significantly higher than current spot prices.OPERATIONS UPDATEIn its Wembley/Pipestone Division, where Kelt has a 14-well development drill & complete program targeting Montney oil/liquids-rich gas horizons as part of its 2024 capital program, the Company has drilled and completed the first six wells from its 14-2 pad. These wells offset two existing wells that had an average IP30 rate of 1,326 BOE/d (59% oil and NGLs) per well. The Company is currently flow-testing the 14-2 wells and expects to continue producing them, and at the same time, shut-in lower CGR gas wells in the area as it awaits completion of a new gas plant that will add 50 MMcf per day of raw gas firm service processing upon start-up, expected prior to the end of the year. Kelt has commenced drilling operations on its five well program off its 14-9 pad, after which the Company will move to its three well program off its 14-26 pad. Kelt expects to frac these remaining eight wells during September and October, bringing them on production in December 2024 with the anticipated start-up of the new gas plant. At Wembley/Pipestone, Kelt also has 34 MMcf per day of firm raw gas processing capacity at another third-party gas plant. During the second quarter of 2024, this plant processed an average of approximately 21.4 MMcf/d (63%) of Kelt's share of capacity. During the quarter, the operator shut-in the plant to conduct certain scheduled maintenance operations during which it was discovered that additional maintenance was required. The plant is currently running at 50% capacity but is expected to resume full ...