Granite Oil Corp. announced Aug. 24 test results from its latest well in the Alberta Bakken oil pool in the Ferguson area in southern Alberta.

Calgary, Alberta's Granite said the well, 102/01-24-003-17W4/00, produced an average of about 1,200 barrels per day (bbl/d) of 31 degree API oil and 600 thousand standard cubic feet per day (Mscf/d) of solution gas during a four day production test.

The well also flowed about 1,150 bbl/d of 31 degree API oil and 800 Mscf/d of solution gas at a flowing wellhead pressure of 420 pounds per square inch (psi), while restricted with a 5/8 inch choke, at the conclusion of the test.

The well was drilled in the core of the area under the company's gas injection EOR project. Granite holds 100% working interest in the well.

The well has a total lateral length of 1,250 meters and was completed with 15, eight ton fracks using nitrified water, at an all-in cost of $2.1 million dollars. The total well cost is 25% lower than the original $2.8 million included in the company's initial guidance for 2015. Granite said it anticipates that its well costs will continue to decrease over the remainder of the year.

The well will be placed on production in the coming days at a restricted rate in keeping with Granite's focus on managing pool declines.

Granite said the high oil deliverability combined with the low gas to oil ratio of the well is a clear demonstration of the effectiveness and efficiency of the company's gas injection EOR scheme. The company is currently re-injecting 100% of its tied-in Bakken solution gas into its Alberta Bakken property under this EOR scheme through six horizontal gas injection wells.