Legacy, as operator, drilled and completed two strat to horizontal wells in the Big Valley (Three Forks) formation in the southern Alberta Bakken light oil play. Results have been encouraging but in line with an exploratory, early stage play. Both strat wells encountered multiple oil saturated horizons and the horizontal laterals were drilled into a light oil bearing, overpressured reservoir. Technical work continues on analyzing the geological and reservoir model based on the data gathered from these two wells and will be integrated with recent successes other operators have announced in immediate proximity to Legacy's land. Together, all the information will be used to determine the pace of development in 2012.
Mutiny, i wouldn´t like to say that Spring Coulee is good well, i would like to note only that BWD expirienced partner LEG worked on this well about 7-8 months spending 12MM and results... we can see at BWD presentation on the page 7.
MUR also bought Spring Couleee adjacent acreage in Sept.2011 and they have had positive result from the sixth well drilled in this acreage:-)
Production estimates in BWD presentation are for Q4 2011. We know from January PR that Kipp produced about 14 days:-)
No, Spring Coulee isn't going anywhere. It's been in the press releases that they can't properly stimulate the well due to completion problems. I agree though that it should have been good. Remember BWD/LEG bought a bunch of contiguous land right after they drilled Spring Coulee.
I went back and looked at the original JV press release. It looked like LEG had an out after they drilled the first two wells. Not sure if this applied to BWD also. It looks like those two wells aren't currently producing because BWD's estimated production hasn't moved.
I can see why BWD would be mad if LEG is dragging their feet, but I also can't comprehend why LEG wouldn't try to develop this asset. It could be their best prospective area next to Turner Valley. Based on LEG's current presentation, it looks like either LEG wasn't interested after seeing the well results or were shown the door.
IMO BWD mgmt isn´t entitled to give IP30 PR without LEG agreement.
Btw. Legacy drilled Spring Coule like it be some monster well - nearly 6 months drilled, 3 months last from frac and test. And now when another operators are reporting early success in Big Valley, they keep silent like afish. It seems me they would like to aquire BWD AB assets pretty cheaply, not like they aquired Molopo Spearfish play last year. That is why i think BWD mgmt is competent:-)
The problem is they never officially released 30 day IP rates on the two wells. We've only gotten cumulative intermittent rates. It's been more than a year since the Spring Coulee well was spud and over eight months since Kipp was spud. Based on other operators results on all sides of BWD's lands, the oil and pressure is there. The question now is whether BWD has the right mgmt and partner to succeed.
I saw that. LEG talked about Turner Valley as the SAB and made sure that their earned interest in the Blood land as a result of the HZ was shown as their land. LEG's been having good results in Turner Valley. Sort of interesting that the Turner Valley results happened after the Spring Coulee and Kipp wells.
LEG didn't have 3D or seismic for the BWD land in their future plans in the presentation, but BWD currently has 3D and 4-14 wells in their March presentation over the next 12-24 months. Not sure how BWD is going to pay for it. The oil is there.