Calgary, Alberta–(Newsfile Corp. – January 18, 2024) – Coelacanth Energy Inc. (TSXV: CEI) (“Coelacanth” or the “Company“) announces that it has completed and tested 4 wells at its Two Rivers East Project including 3 Lower Montney Wells and 1 Basal Montney well on the 5-19 pad.
LOWER MONTNEY
The 3 Lower Montney wells (C5-19, D5-19, E5-19) were drilled with an average horizontal length of 3,140 metres and completed with approximately 2.5 tonnes of sand per horizontal metre. Drilling and completion costs came in slightly under budget at approximately $9.0 million per well. The wells were placed on test for clean-up for an average of 10 days until the frac water substantially dissipated and a stabilized rate was achieved. The test rates noted below are based on the final 24 hours of each test.
The average rate achieved for the 3 Lower Montney wells was 1,338 boe/d per well comprised of 729 bbls/d of 39 API light sweet oil and 3.7 mmcf/d of liquids-rich gas. The rates per well were similar as outlined in the table below:
| Well | Oil — bbls/d | Gas — mmcf/d | Total — boe/d | % Light Oil |
| C5-19 | 818 | 3.2 | 1,345 | 61 |
| D5-19 | 527 | 4.2 | 1,222 | 43 |
| E5-19 | 841 | 3.6 | 1,448 | 58 |
| Average | 729 | 3.7 | 1,338 | 54 |
The Company is very pleased with the overall results and more particularly with the oil rates.
BASAL MONTNEY
The Basal Montney well (A5-19) was completed over 2,000 metres of horizontal length and placed on test for clean-up for 6 days. The well required nitrogen assist to keep it flowing and the Company decided to cut the test short due to the high daily testing cost. The Company plans to run tubing and re-test the well on an extended basis in Q3 or Q4 2024. Although the well only recovered 7.3% of the frac water, it did flow 395 boe/d over its final 24 hours comprised of 223 bbls/d of 40 API light sweet oil and 1.0 mmcf/d of liquids-rich gas. A proper re-test will determine commerciality of the current drilling and frac design for future wells.
INFRASTRUCTURE & TAKEAWAY
As previously disclosed, Coelacanth has secured long-term takeaway and processing for up to 60 mmcf/d of gas and will now look to build required facilities and pipelines to handle the 5-19 and subsequent Pads. The Company is in the process of obtaining final regulatory approval with an estimated completion date of Q1 2025.
FINANCIAL
Coelacanth estimates that it had approximately $65 million of positive working capital and no debt at the end of 2023.
President & CEO, Rob Zakresky states, “Overall, Coelacanth believes this was a critical first step in its development as it not only proves success in the drilling and completions design but will allow for years of growth in both reserves and production as we expand the development and prove productivity over multiple potential Montney layers across our current land base of 150 contiguous sections of Montney”
FOR FURTHER INFORMATION PLEASE CONTACT:
COELACANTH ENERGY INC.
2110, 530 – 8th Ave SW
Calgary, Alberta T2P 3S8
Phone: 403-705-4525
www.coelacanth.ca
Mr. Robert J. Zakresky
President and Chief Executive Officer
Mr. Nolan Chicoine
Vice President, Finance and Chief Financial Officer
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Oil and Gas Terms
The Company uses the following frequently recurring oil and gas industry terms in the news release:
| Liquids | |
| Bbls | Barrels |
| Bbls/d | Barrels per day |
| NGLs | Natural gas liquids (includes condensate, pentane, butane, propane, and ethane) |
| Natural Gas | |
| Mcf | Thousands of cubic feet |
| Mcf/d | Thousands of cubic feet per day |
| MMcf/d | Millions of cubic feet per day |
| Oil Equivalent | |
| Boe | Barrels of oil equivalent |
| Boe/d | Barrels of oil equivalent per day |
Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent has been used for the calculation of boe amounts in the news release. This boe conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Product Types
The Company uses the following references to sales volumes in the news release:
Natural gas refers to shale gas
Oil refers to tight oil
NGLs refers to butane, propane and pentanes combined
Liquids refers to tight oil and NGLs combined
Oil equivalent refers to the total oil equivalent of shale gas, tight oil, and NGLs combined, using the conversion rate of six thousand cubic feet of shale gas to one barrel of oil equivalent as described above.
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