Frontera Energy Corporation (TSX: FEC) has announced that it achieved exit rate production of 71,015 barrels of oil as of December 31, 2017.
Frontera Energy Corporation (TSX: FEC) has announced that it achieved exit rate production of 71,015 barrels of oil as of December 31, 2017, which was within the company’s exit guidance range of 70,000 to 75,000 barrels of oil.
As quoted in the press release:
Exit rate production included 8,240 bbl/d from Block 192 in Peru, above previous range expectations of 6,000 to 8,000 bbl/d. Company-wide average production in the fourth quarter, after royalties and internal consumption, was an estimated 64,445 boe/d, down from 71,068 boe/d in the third quarter of 2017 as a result of the downtime experienced in Peru during the quarter.
The Alligator 1x exploration well, on the Guatiquia block, was spud on September 26, 2017 and reached total depth of 12,810 feet on November 11, 2017. The well encountered 18 feet of net pay in the Gacheta and Lower Sand 1 formations, with production testing commencing on December 27, 2017. The well has been producing between 200 and 300 bbl/d of 15 degree API oil from the Lower Sand 1 formation as the Company seeks approval to commingle production from both producible zones. Results from the well have improved the Company’s understanding of the geological model of the block and an additional one to three wells will be drilled from the same well pad in 2018. The Company expects to deliver average first quarter 2018 production of 70,000 to 72,000 boe/d, after royalties and internal consumption, assuming normal operating conditions.
The Company expects to have at least nine active rigs operating throughout the first quarter of 2018 with six active in the Quifa, Cajua and Jaspe heavy oil areas, and three active on the light oil-focused Guatiquia block. Frontera anticipates drilling, or to commence drilling, between 40 and 50 wells during the first quarter, of which 40 to 45 will be development-focused and five will be exploration-focused. The exploration effort will be focused on the Alligator 2x well on the Guatiquia block, the Acorazado well on the Llanos 25 block, both in Colombia, and the Delphin well on the Z1 block offshore Peru. Well site preparation for the Llanos 25 well is underway with drilling expected to begin in April. The Company has recently signed an agreement with Helmerich & Payne for the 3,000 horsepower, H&P-900 rig to drill this well.