US Operations16 Aug 2022 00:19
The Company's total oil production in Wyoming averaged approximately 1,601 bbls/d (gross) for the second
quarter of 2022, as compared to 1,829 bbls/d (gross) for the first quarter of 2022. Production volumes decreased
in the second quarter due to operational interruptions at certain high impact wells. The interruptions were as a
consequence of the miscible flood program, which involves the injection of high pressure solvent which both raises
the reservoir pressure and mobilizes the oil in place. The arrival of the high pressure miscible bank at producing
wells generated higher pressure production at the wellhead. This circumstance led to the requirement to shut in the
wells for a period of time and modify the well configuration by removing the low pressure pumping equipment
and replacing it with a high pressure flowing configuration.
Gas injection at the BFU was approximately 92% dry natural gas and 8% NGLs at an average rate of 4,943 mcf/d
during the second quarter of 2022 as compared to 78% dry natural gas and 22% NGLs at an average rate of 5,018
mcf/d during the first quarter of 2022. In February 2022, the injection stream was changed to be comprised
primarily of dry natural gas, which is anticipated to continue until October 2022. Reservoir modeling has suggested
that sufficient NGLs have been injected into the reservoir to date such that there will be miscible flooding effects
as long as reservoir pressure and voidage replacement is maintained with dry natural gas injection. As new injection
wells are drilled, or when existing producing wells are converted to injection wells, small volumes of NGLs will
be purchased and injected in these new injector wells in order to build miscibility in new areas of the reservoir.
In 2021 and the first half of 2022, much has been learned about the BFU miscible flood project. Average daily oil
production was limited in the first half of 2022 due to constraints at the BFU surface facilities caused by the
progression of the miscible front induced in the reservoir. The Company's ability to optimize the field production
rates and take advantage of the oil production response to the enriched gas injection is currently restricted due to
operating pressure limitations on wellsite treating, separation, and vapor recovery units at several wells in addition
to ongoing limitations on gas gathering system operating pressures. The Company has implemented several
measures to mitigate these issues and is currently observing increased production rates than those at the end of the
quarter with current production not yet stable. Once stable, the Company will be in a better position to forecast its
production going forward. Upgrades to the gas gathering system are being re-engineered in response to increases
to predicted flowing pressures and produced enriched gas volumes currently observed in several wells and during
the second quarter of 2022 that are above current field simula
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