ARC Resources moves closer to commercialization of new Montney target

Image: Joey Podlubny/JWN

ARC Resources is advancing a new asset target towards commercialization as it prepares for the next decade of Montney production.

The company is focusing the bulk of its Montney capital in 2018 on wells and a new facility to process and expand its existing production base, but in the first quarter it also finished off the first multi-well pad in a new development area of the Northeast B.C. play.

ARC has been applying what it calls a “disciplined” approach to the region, called Attachie, since first acquiring acreage in the area in 2010.

Its first well in 2011 yielded a cumulative 30,000 barrels of crude oil and condensate after 600 days of production. Fast-forward to drilling in 2017, and this increased to 100,000 cumulative barrels after less than 200 days on production.

ARC invested $45 million at Attachie in the first quarter of 2018, directed primarily at completion activities on the Attachie West seven-well demonstration pad.

The wells, which ARC says will allow it to appraise multi-layer development potential, will be tied in and brought on production through the second half of 2018 through third-party processing infrastructure. The company says it has initiated a front-end engineering evaluation of commercial development.

ARC currently has six pilot wells on production at Attachie West, all of which have demonstrated strong wellhead condensate rates, it says. Takeaway capacity from the region has been secured on TransCanada’s North Montney Mainline, which is expected to go into service in the first half of 2019.