The Conversation (0)
Hyperion Exploration Corp. (TSXV:HYX) reported its $43 million 2012 capital expenditure program, a light oil and NGL’s weighted production increase of between 68% to 79%, and an operations update on Garrington, Pembina, Buck Lake and Niton.
As quoted in the press release:
In 2011, Hyperion achieved significant year over year growth, and intends to be increasingly active in 2012. Hyperion has initiated an aggressive development program on an existing drilling inventory of 63 net locations (51 targeting light oil). The 2012 drilling program includes a total of 14 gross (9.94 net) wells, of which 12 gross (7.94 net) are targeting Cardium light oil and 2 gross (2 net) are targeting Glauconite light oil. Total capital to complete this program will be approximately $43 million. Hyperion has budgeted to drill 9 gross (5.75 net) wells in Q1, 2012, which will generate record production increases into Q2 2012. This aggressive field activity will be executed through the use of four drilling rigs, three operated and one non-operated.
OPERATIONS UPDATE
Given the market volatility in Q4 2011 and the outperformance in the Garrington program, the Company decided to defer drilling 1 gross (0.60 net) well until Q1 2012. The deferral of this well did not affect the Company achieving 2011 guidance of 950 boe/day average and a peak of 1,500 boe/day in December 2011. Hyperion finished 2011 by bringing on production 2 gross (2 net) Cardium horizontal light oil wells at Pembina in early December. These successful wells had an average IP30 production rate of 140 boe/d (90% oil) each, which achieves Hyperion’s base Cardium type curve.2012 Drilling activity will be concentrated on areas with previous success, specifically Garrington, Pembina and Buck Lake. In addition, the Company will expand the drilling scope with locations in the Cardium light oil formation in Niton and the Glauconite light oil formation in Garrington. A summary of Hyperion’s drilling plans by area is as follows:
• Total 2012 drilling plan – 14 gross (9.94 net) wells including:
◦ Garrington – 5 gross (4.20 net) Cardium light oil wells and 2 gross (2 net) Glauconite light oil wells;
◦ Pembina – 4 gross (1.64 net) Cardium light oil wells;
◦ Buck Lake – 2 gross (1.10 net) Cardium light oil wells; and,
◦ Niton – 1 gross (1.00 net) Cardium light oil well.
Click here to read the Hyperion Exploration Corp. (TSXV:HYX) press release
Click here to see the Hyperion Exploration Corp. (TSXV:HYX) profile.