Baytex Energy Corp. says it has “very encouraging” initial flow rates from two wells drilled in Alberta’s Duvernay play using a technology it has implemented in Texas.
However, two other Duvernay wells drilled in the first half of the year had to be abandoned.
The successful wells were fracture stimulated using a plug and perf system, which is the dominant technology in the Duvernay play.
They were also the first Baytex-operated wells to use fracture diversion technology, which CEO Ed LaFehr described as “a completion strategy working favorably in our Eagle Ford assets.”
Details on the technology implemented in the Duvernay were not provided, but elsewhere fracture diversion has been used as a system where agents are deployed within well bores to push injection fluid to new fractures within the reservoir.
Baytex’s first fracture-diversion well was brought on-stream on June 27 and generated a 30-day initial production rate of 1,360 boed/d, 76 percent liquids, the company said.
The second well was brought on-stream July 26 and is currently producing 1,063 boe/d at 89 percent liquids.
These successful wells delivered an approximate 20 percent reduction from the average cost of previous wells, to approximately $7 million each to drill and complete, LaFehr said.
“As the play moves from delineation to development, the efficiency from multi-well pad operations is expected to drive further cost reductions,” he said.
Baytex did not do as well with the two other Duvernay wells it drilled in the first half of the year.
While these two wells encountered favourable geological characteristics, both had to be abandoned due to wellborn stability issues.
“Having conducted an in-depth review of these two wells, we developed an improved drilling process and will re-drill these attractive geologic locations in the future,” LaFehr said.
Baytex produced an average of 98,402 boe/d in the second quarter of 2019, up from 70,664 boe/d in Q2/2018. The company reported net income of $78.8 million, compared to a net loss of $58.8 million in the same period of last year.