Australia Business Unit Production & Activity Review
- Q4 2016 production decreased 3% quarter-over-quarter and 18% year-over-year. The year-over-year decrease is primarily due to production decline from the horizontal sidetrack well drilled and placed on production in Q4 2015. Full year 2016 production decreased 2% versus 2015.
- Production volumes are managed within corporate targets while meeting customer demands and the requirements of long-term supply agreements.
- We continue to plan for long-term production levels of between 6,000 and 8,000 bbls/d.
- The two sidetrack wells we drilled during Q2 2016 continued to demonstrate strong productive capability with combined production rates of approximately 4,300 bbls/d when utilized. Vermilion intends to produce these wells intermittently to meet corporate production targets while seeking to optimize ultimate recoveries and oil pricing. Following our successful 2015 and 2016 drilling campaigns, we do not expect to drill any additional wells in Australia until 2019.
- Additional 2016 activity included work on our Wandoo Platforms Life Extension project, CALM buoy maintenance and subsea inspections.
Please see our 2016 Annual Report for further information