Sonde Resources encounters gas pay at Montney well in Canada

Sonde Resources has encountered high permeability of gas at the 4-19-67-26W5 HZ well in the Ante Creek North area in western Canada.

This is the company’s first Montney exploration well and a production test was conducted over five days.

The well has been drilled and cased to a measured depth of 3,350m and was stimulated using a ball-drop system with eight stages of gelled propane.

After recovering 54% of load propane at the completion of the flow back period the well flowed at rates averaging 1,200bbl fluid plus 1.8MMcf total gas per day, with formation hydrocarbon rates of 120bbl of 41.6API gravity oil plus 1.3MMcf gas (334 boe / day).

The total cost of drilling, casing and stimulation amount to $4.3m.

An extended production test for a period of 14-30 days will be initiated by the company to determine if oil cuts will stabilise or increase.

Oil cuts stood at about 10% during the five-day test period; the company has also shut-in the well for a required build-up test.

Sonde Resources said that if the oil cuts stabilise in the 10-15% range, the high-permeability Montney can deliver good results.

The need to add dedicated saltwater disposal capacity to these wells can increase per well costs by $250,000-$500,000, but does not generally cause significant increases to operating expense.

Sonde Resources president and CEO Jack Schanck said, "This is the first well in the Ante Creek North area to produce oil and gas from the Montney, and proving its economic viability would create an entirely new and untapped pool for future development."

The company has over 24,960 acres adjacent to the well.