Q we need to ask is can i3E match others in Clearwater?9 Oct 2021 09:21
Q we need to ask of our very well paid management is can i3E match others in Clearwater?
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Baytex Q2 Conference Call Q&A Below. First part of call covered same content you can read in the presentation deck.
baytexenergy.com/files/pdf/corp…
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Q) Regarding Clearwater, you seem to be getting better results than peers with only 2 laterals. Is that repeatable? What is differentiating?
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A) Been evaluating this play for years. All results are generally confirming mapping, geology, and reservoir the team had anticipated. It's not a big surprise. In general we're confirming expectations.
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(cont'd) We announced 175bpd / 2-lateral discovery well in Q1. We're now saying we've got a 2nd drilled on a water base at the same level of 175 boe/d. We've got 2 x 8-leg multi-laterals that were brought online in July.
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(cont'd) Only the 10th day of production, so still early. But results so far are greater than 500 boe/d. It will be variable, but all is going according to plan. Now working on 3rd and 4th leg of 8 -- out in the east.
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Q) What do you want to see in Clearwater before directing more capital to it? How does it interact with your 5-year plan?
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A) We have 100 sections of prospective land. 60 is in Peavine. 40 sections to the north. That's the scope of the play. If we've got 4 wells per section that's a lot of inventory. If 50 sections work at 4 wells per section, that's a couple hundred wells.
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(cont'd) On one rig year we can drill 18-20 wells per year. So that's a 10-year inventory. Beauty is if it's what we think it is (benchmarks to similar areas) we believe it grows within it's own cashflow.
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(cont'd) That's the beauty of Clearwater that very few other places can do. Economics are strong -- 100-200% returns. Less than a year payback. 2-3x recycle ratio. Will know results by September. If positive, could see going to a rig year program.
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(cont'd) More info coming at fall approaches and 2022 budget starts getting developed.
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