HEADWATER EXPLORATION INC. PROVIDES FIRST QUARTER OPERATIONS UPDATE
In
The Clearwater E exploration test at 00/04-35-076-02W5 achieved a 15-day initial production rate of 155 bbls/d of 24 API oil before being shut in for break up. The team is extremely excited about this result as it validates a Clearwater E pool that covers approximately 15 sections of Headwater land. An all-weather access road will be constructed to access this well and additional drilling locations in this pool late in the third quarter of 2024.
Based on strong results from our initial Clearwater G discovery well at 00/02-30-075-01W5, three Clearwater G follow up tests are expected to be drilled early in the second quarter of 2024 extending north and south of this discovery well.
Implementation of our first full section waterflood in section 7-076-02W5 at Marten Hills West is complete. Initial water injection rates have been strong with offsetting producing wells showing immediate gas-to-oil ratio decreases. The pattern is expected to stabilize approximately 300 bbls/d of oil production. Continued successful results from this pattern will set up significant further waterflood development across the Clearwater A pool.
Two multi-lateral exploration wells were drilled in the West Nipisi expansion area via winter access roads. Unfortunately, these wells had to be prematurely shut in for break up in mid-March due to unseasonal warm weather.
The first four-leg lateral well at 00/05-18-77-11W5, targeting the Clearwater F sand, achieved a five-day initial production rate of 90 bbls/d of 16.5 API oil. This highly encouraging result is expected to be followed by a second test of the Clearwater F sand in the first quarter of 2025 once winter access can be re-established.
A second four-leg lateral exploration well targeting the Clearwater G sand was drilled at 02/05-15-077-12W5. The well encountered natural fractures while drilling resulting in extremely strong fluid rates but also high water cuts in the later stages of load recovery. The geo technical shows while drilling this well were highly encouraging with strong porosity and oil staining throughout the laterals. A follow up test away from the natural fracturing in this pool will be drilled in the first quarter of 2025 when winter access can be re-established.
Our exploration team identified an encouraging
Headwater is excited to report drilling of the Company's first
Headwater is in the midst of an active delineation drilling campaign at Seal targeting both the Falher B and D zones. This four well program, which includes three Stingwray wells, is a follow-up to the Falher B discovery well at 03/13-06-083-15W5 and the initial Stingwray test in the Falher D at 00/07-07-083-15W5.
The successes achieved to date in Seal are expected to establish the area as a multi-zone growth engine for Headwater over the next several years.
A stratigraphic test and one single-leg horizontal well have been recently drilled on the 56 section Manville prospect in
The Headwater team continues its pursuit of organic growth opportunities in and beyond the boundaries of the
Over the balance of 2024, the current budget contemplates testing an additional three to four exploration prospects.
Additional corporate information can be found in the Company's corporate presentation and on Headwater's website at www.headwaterexp.com.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements. The use of any of the words "guidance", "initial, "anticipate", "scheduled", "can", "will", "prior to", "estimate", "believe", "potential", "should", "unaudited", "forecast", "future", "continue", "may", "expect", "project", and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein, include, without limitation, 2024 production guidance; expected timing around future capital expenditures including exploration tests, road construction and waterflood development; the expectation that growth capital will be focused on the second half of 2024; the expectation the waterflood pattern in
BARRELS OF OIL AND CUBIC FEET OF NATURAL GAS EQUIVALENT: The term "boe" (or barrels of oil equivalent) and "Mcf" (or thousand cubic feet of natural gas equivalent) may be misleading, particularly if used in isolation. A boe and Mcf conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value.
I NITIAL PRODUCTION RATES: References in this press release to initial production rates, other short-term production rates or initial performance measures relating to new wells are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. All IP rates presented herein represent the results from wells after all "load" fluids (used in well completion stimulation) have been recovered. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Accordingly, the Company cautions that the test results should be considered to be preliminary.
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