Contact Announces Interim Filing, Credit Facilities Increase and Operations Update
CALGARY, ALBERTA--(Marketwired - Feb. 28, 2014) - Contact Exploration Inc. ("Contact" or the "Company") (TSX VENTURE:CEX) is pleased to announce that it has today filed its condensed interim consolidated financial statements for the three and nine month periods ended December 31, 2013 and the related management's discussion and analysis ("MD&A") on the Company's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR") website at www.sedar.com.
Credit Facility Increase
The Company is also pleased to announce that its senior lender has increased the amounts available under the Company's credit facilities to $7.7 million. The amended operating facility has been increased to $4.5 million and the non-revolving acquisition and development demand loan has been increased to $3.2 million. No amounts are currently drawn under either facility.
Operations Update
Contact is currently in the late stages of drilling the Contact operated well at 02/14- 30 -63-5 W6M ("02/14-30 Well"). This well was originally programmed to target a bottom hole location of 15- 30 -63-5 W6M, but during drilling it became operationally advantageous to target a bottom hole location of 14- 30 -63-5 W6M. The 02/14-30 Well is being drilled in the Upper Montney D4 interval. The Company anticipates that completion operations on the 02/14-30 Well will be finalized in late March 2014. With success, Contact expects the 02/14-30 Well to be equipped and flowing into the Company's central compression and condensate stabilization facility in May 2014. Upon rig release of the 02/14-30 Well, the Company anticipates spudding a well by mid-March 2014 from a centrally located pad at 7-19-63-5 W6M, with the intention of drilling a minimum of two new wells from this surface location through spring break-up 2014.
Contact's 5-23-63-6 W6M (25% WI) well was brought on production in early January 2014 and averaged 2.0 mmcf/d (gross) natural gas production during its first 30 days of production, with an average field condensate production estimate of 350bbl/d (gross) (being 500 mcf/d and 88bbl/d, or 171 boe/d, net to Contact).
Contact's 16-25-63-6 W6M (25%) well was brought on production in early February 2014 and has averaged 2.3 mmcf/d (gross) natural gas production during its first 26 days of production, with an average field condensate production estimate of 430bbl/d (gross) (being 575 mcf/d and 107bbl/d, or 203 boe/d, net to Contact).
Contact's 16-17-63-5 W5M (25% WI) well was brought on production in mid-February 2014, which well has experienced production performance similar to the other Contact wells brought on production in 2014.
Since bringing its central compressor and condensate stabilization facility online in mid-January 2014, Contact's aggregate net production has fluctuated between 500 - 800 boe/d, on per producing day basis. Contact expects production from its existing Kakwa wells to stabilize once all early stage operational matters are addressed in the normal course. Rates will also be subject to normal production declines, which Contact expects to offset with production from new wells scheduled to be drilled at Kakwa.
About Contact Exploration Inc.
Contact Exploration Inc. is a public oil and gas company which has a long-term history of operating in Atlantic Canada and has recently demonstrated success in Alberta's liquids-rich Montney Formation tight gas play. For more information, please see the Company's website: www.contactexp.com
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