Questerre proves up Kakwa-Resthaven area, Alberta

Questerre Energy Corp.’s 04-16-63-6W6M (04-16 well), drilled in June with a 2,200-m lateral, has produced 2,110 boe/d consisting of 6.18 MMcfd and 1,081 b/d of condensate during 746 hr of production testing. The well flowed 1,458 boe/d (4.4 MMcfd of gas and 723 b/d of condensate) from Montney during the last 24 hr of the test.

The 4-16 well was flowing up 4½-in. casing and a 13.49-mm choke, producing 4.35 MMcfd of gas equivalent. Questerre Chief Executive Officer Michael Binnion stated the results were consistent with other wells drilled in the area in 2016 and, “although early, [the results] are positive for the improving completion design.” The company also said there were less than 25 ppm hydrogen sulfide in the produced gas and condensate. The company said the initial rates from the 04-16 well were encouraging, but not necessarily indicative of long-term performance or of ultimate recovery.

Completion operations in the Montney were finalized in this year’s fourth quarter, and the well was drilled through a joint venture with Poland’s PKN Orlen. The Polish operator purchased Questerre’s original JV partner, Kicking Horse Energy Inc. in January 2015 for $293 million, PKN said. Questerre owns seven sections in the Kakwa-Resthaven area in western Alberta, which situated 75 km south of Grand Prairie. The area is prospective for condensate-rich natural gas in the deep, over-pressured fairway of the Montney formation at a depth of 3,100-3,600 m. Questerre’s wells are targeting one of three prospective intervals in the Upper Montney formation.

Economics for these prospects are enhanced by high liquids content and Crown royalty incentives for new deep horizontal gas wells with initial royalty rates of up to 5%. Questerre holds 19,040 (11,000 net) acres in the area, including a 100% working interest and operatorship of 8,320 net acres.

Questerre will earn a 25% interest in the 04-16 well once PKN has received net revenue equal to four times the drilling and completion costs and two times the equipping and tie-in costs of each well.

Further to advancing Montney production, Alberta Energy Regulator approved Calgary-based SemCAMS ULC’s plan to build the proposed Wapiti sour gas processing plant in the Wapiti region of the Western Canadian Sedimentary Basin in August. Commissioning is planned for fourth-quarter 2017 (OGJ Online, Aug. 17, 2016).

Contact Tayvis Dunnahoe at tayvisd@ogjonline.com.

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