Anderson Energy Ltd. (TSX: AXL) has reported details pertaining to its well projects targeting Canada’s Cardium tight gas play.
In 2010, 22 gross Cardium horizontal oil wells were drilled. In the fourth quarter of 2010, 6 gross Cardium horizontal oil wells were drilled. To date in the first quarter of 2011, Anderson has drilled 15 gross Cardium horizontal oil wells, and currently has four drilling rigs still working in the field finishing the remainder of the winter program.
As of December 31, 2010, the company had 13.4 net wells producing. Today, 22.5 net Cardium horizontal wells are producing with 7.3 net new Cardium horizontal oil wells expected to be on-stream in the second quarter of 2011.
Cardium production was approximately 1,800 to 1,900 BOE/d (85% oil and NGL) as of March 25, 2011. Oil and NGL production is approximately 2,450 bpd, up substantially from 1,130 bpd in the first quarter of 2010
2011 Outlook
Anderson's Cardium prospective land inventory is 112.5 gross (65.8 net) sections, which has appreciated 10% since the update provided in our January 17, 2011 press release. Based on a development drilling density of three wells per section, the company estimates it could potentially drill 338 gross (197.4 net) Cardium horizontal wells. From this location list, the company has advanced 183 gross (111.2 net) horizontal locations to be drilled in the next few years (including wells drilled to date).
The company plans to drill 32 gross (22.0 net capital, 20.0 net revenue) Cardium horizontal oil wells in 2011.
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