Three of the top publicly-traded Montney producers — Encana, Seven Generations Energy and ARC Resources — posted strong Q2 results and were among the most active operators in the Western Canadian Sedimentary Basin at the start of August.
Pure-play Montney producer Seven Generations had eight rigs working at the start of August, according to JWN’s rig locator. The company drilled 32 wells, completed 33 wells and brought 23 wells online in the second quarter of 2017.
The company’s average production in the second quarter was 165,200 boe/d.
“We continue to see year-over-year growth in our primary metrics — production, funds from operations and operating income,” said 7G CEO Marty Proctor.
“Condensate yields remain strong, and are the key driver behind our financial performance.”
7G’s capital spending totalled $874.8 million in the first half of the year, which is 80 per cent more than the same period last year.
Encana, which operates both in the Montney and the Duvernay in western Canada, had 10 rigs at work at the start of August.
In the Montney, Encana reported a 25 per cent increase in its 180-day initial production type curves in the second quarter. It also increased its “premium return” well inventory by 1,000 locations.
Encana attributes this positive result to “cube well development,” which is an advancement on multi-well pad drilling.
Cube wells target multiple stacked pay zones from a single above ground location. All of the inventoried wells for a given cross section of pay are drilled and then simultaneously fractured.
Encana recently completed a 16-well pad in the Montney, according to energy investment bank GMP FirstEnergy.
Encana posted total company net earnings of $331 million in the second quarter of 2017, turning the corner from its loss of $601 million in the second quarter of 2016.
Canada’s iconic resource play company anticipates doubling its oil and condensate production from the North Tower area of the Montney by the fourth quarter of 2017, compared from the fourth quarter of 2016.
ARC Resources, which spent $406.2 million and drilled 66 wells in the first half 2017, says that nearly 90 per cent of capital investment was directed toward its Montney assets.
The company’s second quarter production was 113,410 boe/d, which was slightly down from the first quarter (one per cent).
But “given a re-sequencing of projects,” ARC Resources announced it is increasing its 2017 capital program to $830 million, from the $750 million planned previously.