Granite Oil Corp. has now drilled and completed its first two development wells since slowing its development pace in July of 2017 as it shifted focus to a new area of its Bakken pool. The average flowing IP 30 of these wells was approximately 270 bbls/d of oil. The wells were drilled on the 200 m offset spacing formula that produced the best overall well results for pool development to date. The company also reported the production response from its Bakken pool from not drilling for five months. The company's Gas Injection EOR scheme is proven technology and, as anticipated, the pool production demonstrated typical secondary recovery response resulting in a shallower production decline profile.   

The company is budgeting a further reduction of capital in 2018 to approximately $13 million, which is designed to continue to increase its PDP reserves and their net present value.

Based on field estimates, February 2018 production was approximately 2,300 bbls/d of oil. 


In 2017, the company invested approximately $18.8 million of capital expenditures (unaudited) all organically, including approximately $3.0 million of exploration, into its 100%-owned Bakken oil property. This represents a decrease of approximately 27% in year over year development spending.