PetroBakken Energy Ltd. (TSX:PBN) a 59% owned subsidiary of Sweet 16 Growth Portfolio member Petrobank Energy and Resources Ltd. (TSX:PBG) announced the Company's year-end reserves and provided an operational update.
2010 average production of 41,688 barrels of oil equivalent per day ("boepd") increased 58% over 2009. (My 4th quarter forecast model assumed 41,500 boepd (~82% oil + NGLs) for the 4th quarter. - Dan)
-- Proved plus probable ("2P") Company Interest(1) reserves increased by 18% to 171.4 million barrels of oil equivalent ("MMboe") at December 31, 2010, replacing production by 274% (2P Company Gross(2) reserves increased 18% to 169.2 MMboe).
NOTE: I'm expecting their Cardium development drilling program to be a significant percentage of PetroBakken production growth in 2011 & 2012. - Dan
-- Our new entry into the Cardium play in Alberta during 2010, through three corporate acquisitions and our initial drilling campaign, has yielded incremental 2P reserve additions of 43 MMboe. Our first 55 operated wells drilled in 2010 resulted in reserve recognition for 149 of our undeveloped Pembina Cardium locations (out of our current inventory of over 650). This drilling campaign has accelerated into 2011.
-- From July 2010 to mid-February 2011, we drilled 80 (65.9 net) PetroBakken-executed Cardium wells, of which: -- 44 (39 net) wells are producing, 16 (11.4 net) wells are completed but not yet producing, and 20 (15.5 net) wells are waiting on completion. Production results from single-leg horizontal multi-stage fracture stimulated Cardium wells continue to meet our expectations with:
-- seven day average rates of 423 barrels of oil per day ("bopd") from 40 wells,
-- thirty day average rates of 246 bopd from 38 wells, and
-- sixty day average rates of 176 bopd from 21 wells.
-- In our 2010 reserve report, producing Bakken bilateral horizontal wells received, on average, an incremental 35,000 barrels ("bbls") of oil over our 2009 reserve report assignments for 2P undeveloped bilateral horizontal locations. -- Activity in the Bakken play continues to move forward with bilateral drilling and enhanced oil recovery ("EOR") projects.