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Crescent Point Energy continued to drill new oil wells and increased production by its company overall, including in the Bakken properties in southeast Saskatchewan, with the results outlined in its second quarter report.
Overall, the company achieved a new production record in the second quarter averaging 96,972 barrels of oil equivalent per day, weighted 92 per cent to light and medium crude oil and liquids, an overall growth rate of 47 per cent over the second quarter of 2011, and a growth of more than 6,500 boe/d over the first quarter of 2012.
"We've significantly outperformed in the first half of this year, relative to expectations. Spring breakup was better than expected, but more importantly, we've had strong drilling results in 2011 and the first half of 2012. Our waterflood programs in the Bakken and Shaunavon, as well as facilities' optimizations, have also contributed to our results," said Scott Saxberg, president and CEO of Crescent Point.
"We've executed a successful drilling program, our oil production is well-hedged, and we are well-positioned as we move into the second half of the year, all of which has allowed us to upwardly revise our production forecasts," he added.
In their southeast Sask. operations, Crescent Point participated in the drilling of 23 oil wells, or 13.9 net, with a 100 per cent success rate. Of the wells drilled, 12 (10 net) were horizontal wells in the Bakken light oil resource play, along with 11 (3.9 net) horizontal oil wells in conventional zones.
During the quarter, Crescent Point converted two additional Viewfield Bakken producing wells to water injection wells. By the end of the second quarter 2012 (June 30), the company had converted a total of 35 producing wells to water injection wells in the play.
Production performance from water injection patterns in the Viewfield Bakken resource play continues to exceed expectations and has demonstrated the field-wide application of waterflood to the play. Discussions with potential unit partners and the provincial government to implement unit-wide waterflood are advancing.
Crescent Point is continuing to increase deliveries of crude oil through its new Stoughton rail facility, allowing the company to diversify its markets for Bakken crude oil, and to more effectively manage pipeline disruptions.
The company delivered about 9,800 barrels of Bakken production through the facility during the second quarter. An expansion to their rail facility was completed late in the second quarter and current throughput exceeds 16,000 barrels a day, with an additional 1,000 barrels a day also being delivered to third-party sites.
For the remainder of 2012, Crescent Point will continue to develop its emerging plays, and will also continue to expand the waterflood program in the Viewfield Bakken resource play, which continue to show positive results.
To provide a hedge against price volatility, Crescent Point will continue to increase crude oil deliveries through its new Stoughton rail facility, which is providing access to new markets. Current throughput at the facility is greater than 16,000 barrels of oil per day, with an additional 1,000 barrels per day being delivered to third-party sites.
