Business
Spyglass Resources Corp. Provides Drilling Update and Restarts Dixonville Field After Pipeline Incident
Spyglass Resources Corp. Provides Drilling Update and Restarts Dixonville Field After Pipeline Incident.
About this update from Spyglass Resources Corp
[{"type":"text","content":"\n \n \n Spyglass Resources Corp. Provides Drilling Update and Restarts Dixonville Field After Pipeline Incident\n \n \nSpyglass Resources Corp. Provides Drilling Update and Restarts Dixonville Field After Pipeline Incident\n \n CALGARY, ALBERTA--(Marketwired - Jun 29, 2014) - \n All values are in Canadian dollars unless otherwise indicated. Conversion of natural gas volumes to barrels of oil equivalent (boe) are at 6:1.\n Spyglass Resources Corp. (\"Spyglass\", or the \"Company\") (TSX:SGL)(OTCQX:SGLRF) announces that it has restarted production from the Dixonville field after a pipeline incident and provides a drilling update including details on the Company's recent tie-in of a light oil well at Cessford in southern Alberta, the completion and tie-in of a natural gas well in the Cadomin at Noel and the Halkirk-Provost ten well drilling program.\n Dixonville Incident Update\n Effective immediately the Alberta Energy Regulator (AER) has rescinded the shut in order for the Dixonville field and Spyglass has restarted approximately 28 percent (800 bbl/d) of oil production. Additional production will be restored as pipeline inspection and remediation continues.\n In early May the company began conducting in-line inspections of the Dixonville gathering system. The recent pipeline incident occurred on a pipeline that was scheduled for inspection within the next two months. As a result of this incident, Spyglass will only restart portions of the gathering system that have passed inspection or where remediation work has been completed. Based on the current work schedule the field is expected to return to approximately 75 percent of capacity within the next three weeks. Complete inspection and remediation of the gathering system is expected to take 10 to 12 weeks at which time the field will return to its full capability.\n The reduction in Dixonville production as a result of pipeline incidents and ongoing integrity work is expected to impact the cash flow of the company by approximately $6.5 million divided between the second and third quarters.\n Drilling Update\n In mid-April, Spyglass commenced drilling a horizontal Cadomin natural gas well at Noel. The well was completed earlier than anticipated, beginning post frac flow-back in late June. The current flow rate into the pipeline from the well is over 1,000 boe/d of natural gas. Th...