Encana is continuing to target condensate-rich Montney Shale assets in western Canada under its five-year plan, Kallanish Energy reports.
The company’s latest Montney completions in Bitish Columbia and Alberta are delivering 60-day initial production rates of between 500 and 1,200 barrels per day (BPD) of high-value condensates, the company said.
It has four wells in Pipestone that have each produced in excess of 100,000 Bbls of condensate in under 100 days, according to Encana.
By 2019, the Alberta-based company expects the Montney will produce roughly 70,000 BPD of liquids, primarily high-margin condensate, plus 1.2 billion cubic feet per day (Bcf/d) of natural gas.
“Our world-class condensate-rich Montney asset keeps getting better and we believe there is opportunity for significant upside to our five-year plan,” said president and CEO Doug Suttles, in a statement.
The company, he said, is making its Montney assets more valuable by operating at scale and delivering well efficiencies and cost efficiencies.
The company has access to infrastructure and multiple markets and is actively managing the price risk to maximize value from the Montney by hedging on prices, Suttles said. New infrastructure and downstream facilities will be added in late 2017 and 2018.
The company said it is projecting non-GAAP operating margins of about $14 per barrel of oil-equivalent.