RE: Toronto dominion bank5 Apr 2021 17:15
Plan for accelerating oil production:
• Beginning April 1, injection gas volumes (produced and make-up gas) are expected to increase dramatically, peaking in the fourth quarter of 2021 o Purchased monthly make-up gas volumes will increase in the month of April to 126,000 Mcf, from 15,600 Mcf in the month of February, peaking at 200,000 Mcf in the fourth quarter o This dramatic increase in purchased make-up gas volumes is due to the COPL's strong balance sheet as a result of its equity and debt financings used to acquire Atomic and SWP • Crude oil production should increase dramatically by year-end from the current c. 1,350 bbl./d due to the ramp-up in gas injection volumes • A total of 20 additional Production and Injection wells are planned to be drilled in 2022 and 2023 to balance the oil recovery from the field and maintain high production levels. COPL's engineering team will commence detailed well planning in 2021 for execution in 2022 • Atomic holds an operated interest in a large contiguous lease block in Converse County, Wyoming
Recently large US oil and gas independents have announced substantial drilling plans and acquisitions north of the lease block targeting light oil in multiple stacked horizons ? These light oil-bearing horizons appear to be unexploited and it highlights the further development potential at the Barron Flats Deep Unit (below the Shannon BFU) and Cole Creek Unit. COPL's geological and geophysical team will commence an evaluation of these horizons • The Company's reservoir simulation conducted by a third-party specialist reservoir engineering firm in January of this year suggests a gross production target from the Barron Flats Unit is now 7,000 bbl./d in 18 months time due to the increase in gas injection volumes alone. This equates to a five-fold uplift on current production rates
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