Contact Exploration's Kakwa Development Continues with Successful Test Results in Upper Montney Zone
Contact Exploration Inc. ("Contact" or the "Company") (TSX VENTURE:CEX) is
pleased to announce that the seventh Contact-operated horizontal Montney well at
02/14- 30 -63-5 W6 (the "02/14-30 Well") (Contact 25% working interest) drilled
in the Upper Montney D4 interval has been successfully completed and tested. The
well was drilled to a total measured depth of 4,563 metres, with a horizontal
leg of 1,068 metres, approximately 200-500 metres shorter than Contact's other
Kakwa wells and the shortest of the Company's Kakwa horizontal wells drilled to
date. The well was completed using a water-based nitrogen foam frac and then
tested for approximately 119 hours, flowing up 4.5 inch casing. During the final
24 hours of flow-back the well continued to clean up frac fluid and produced
against anticipated gathering system pressure of approximately 1,800 kPa and
averaged gross production rates of 1,076 boe/d consisting of 621 bbl/d
condensate and 2,734 mscf/d natural gas (155 bbl/d and 684 mscf/d, or 269 boe/d
combined, net to Contact).
The 02/14-30 Well is Contact's first operated well in the uppermost Montney D4
interval. Contact is encouraged by the strong test rates and high ratio of
condensate to natural gas production from this interval and the potential for
additional development of this interval across its entire East Kakwa land
position. Production results from the Upper Montney D4 interval in the 02/14-30
Well have been announced based on the initial production test period given the
significance to the Company of having achieved Kakwa development success in an
additional Montney interval. As previously announced, Contact expects to release
further development drilling production results at Kakwa based on 30 day initial
production rates.
The Company advises that although the initial rates from the 02/14-30 Well are
very encouraging, production test results are not necessarily indicative of
long-term performance or of ultimate recovery from the 02/14-30 Well.
Final well equipping and onsite facilities work will begin immediately to
provide for tie-in of production from the 02/14-30 Well into Company-operated
infrastructure. Contact anticipates that the 02/14-30 well should be ready for
production in early May 2014.
