Equal Energy increases 2013 drilling program

Equal Energy Ltd.

Year-to-date drilling results in the Equal Energy Ltd.’s liquids-rich natural-gas Hunton property in central Oklahoma have exceeded the company's reserve and production expectations, while, at the same time, drilling costs have come in below budget. Based on the highly economic results to date, Equal plans to add two additional horizontal Hunton wells to the 2013 drilling program to bring the number of wells to 12 for the year.

Equal drilled three wells during the second quarter of 2013 with a 100% success rate. Two of these wells began producing in late June and the third came on in mid-July.

In total, the first six wells drilled in 2013 are currently producing at a combined rate of 900 boe/d net to Equal. Hunton wells typically take an average of 90 days to reach peak production and will generally maintain that peak rate for 18 months or longer.

Equal's seventh well has been drilled and the eighth well is currently being drilled from the same pad. Both of these wells should be online in September.

Equal says it made the decision to add two horizontal Hunton wells to its 2013 drilling program because of the stronger economics realized in its 2013 program to date. These two additional wells will increase the capital budget by only $3 million, to $39 million for the full year, as overall capital expenditures are lower than originally budgeted.

In early June, Equal Energy asked HAAS Petroleum Engineering Services Inc., the company's third-party reserves engineering firm since 2006, to perform a mid-year evaluation. Equal requested the mid-year evaluation due to numerous factors observed at the field level, including better than expected production performance of both existing wells and new wells drilled in 2013, to add PUD locations and make adjustments related to Equal's production sales contracts.

Equal Energy (NYSE:EQU) (TSX:EQU.TO) is an oil and gas exploration and production company headquartered in Oklahoma City, Oklahoma. It currently holds 8,800 net undeveloped acres in the highly economic liquids-rich window of the Hunton dolomite play in central Oklahoma.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...