Traverse Energy Ltd. Revises Exploration and Development Guidance for the Year 2015; Announces Exploration Results for the Year 2014 and Month of January 2015
In 2014, the company drilled 14 wells resulting in 9 oil wells and 5 natural gas wells. At the end of 2014, 7 oil wells and 3 gas wells had commenced production with the remaining wells completed and awaiting tie in. The Coyote battery expansion was completed in the third quarter with clean oil shipments commencing in late August. The facility is licensed to treat up to 2,000 barrels of oil and water and 4 mmcf of gas per day. At Turin, Traverse completed the installation of a booster compressor at the central battery. Total capital expenditures for 2014 are estimated at $31 million. The first two horizontal wells drilled in the Coyote Ellerslie pool were completed in October and commenced production in mid-November. The first well completed averaged 173 BOE/day from the beginning of test to the end of January.
For the month of January 2015, the company's average production was 88 BOE/day. The second well completed averaged 353 BOE/day from the beginning of test to the end of January. Average January production from this well was 253 BOE/day. These averages are calculated utilizing producing hours - the wells were on production 90% of the time during December and January. The wells encountered some initial production issues due to the recovery of fracture sand placed during completion operations.