Encana is using technology it developed in Texas to improve efficiency in its Montney drilling.
The company says it recently delivered a 50 percent well productivity improvement from a new Montney well by applying a completion design similar to one successfully pioneered in the Eagle Ford 12 weeks earlier.
Encana is using “optimized completion designs” in the Eagle Ford, the company said in today’s statement reporting its 2016 results.
These designs are exceeding expectations, Encana says, delivering average 90-day initial production rates of 1,450 boe/d.
“Encana's newest Austin Chalk well delivered a 30-day initial production rate of 1,000
boe/d,” the company said.
Encana is increasing its capital budget for 2017 to between $1.6 billion and $1.8 billion, up from $1.1 billion in 2016, focused on its core areas in the Eagle Ford, Permian Basin, Montney and Duvernay.
Total production is expected to be between 320,000 boe/d and 330,000 boe/d, compared to 352,700 boe/d in 2016.
Encana reported a net loss of of $944 million in 2016 compared to a net loss of $5.2 billion in 2015.
"We carried considerable momentum into 2017," said CEO Doug Suttles.
"Through innovation and our relentless focus on efficiency and supply chain management, we expect to hold total year-over-year drilling and completion costs flat despite cost inflation for some services. We expect to significantly increase crude and condensate production throughout the year and deliver strong corporate margin growth."