Seven Generations Energy says it is “highly encouraged” with results from a new approach to its Montney well pads.
The company brought on its first so-called “triple stack” pad during the second quarter, adding a third layer of reservoir for development.
The pad targets the Upper and Middle Montney, as well as the newer Lower Montney zone.
Seven Generations reported production over the first 60 days from the stack’s Lower Montney wells at 1,467 boe/d, and 1,753 boe/d for the wells in the Upper and Middle Montney. The wells averaged 67 percent and 60 percent condensate, respectively.
GMP FirstEnergy analyst Cody Kwong called the results “solid,” confirming the “robust economics” of Seven Generations Energy’s Nest 2 operating area and the potential of its triple stack developments “for inventory upside and superior financial/operational synergies from drilling three Montney layers off of a single shared pad.”
Kwong noted that Seven Generations met or exceeded all of its operational and financial objectives for the second quarter, while spending 12 percent less capital than expected.
Sales volumes averaged 201,800 boe/d, which the company noted was ahead of its guidance and up eight percent year-over-year.
Seven Generations reported net income of $295.3 million for the second quarter, up from a $24.6 million net loss in Q2/2018.