Canada
- Vermilion has over 15 years of successful Canadian operations
- Canada provides a vast source of oil and gas technology and trained personnel
- New well completion techniques are revitalizing the Western Canadian Basin
Operations
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Operational Activities
Vermilion drilled 14 (11.7 net) operated Cardium wells during the third quarter of 2011 and participated in the drilling of seven (1.9 net) partner wells. A total of 10 gross operated wells were fracture stimulated and six gross wells were brought on production during the quarter. At the end of the third quarter, 28 (24.1 net) operated and 29 (10.2 net) non-operated Cardium wells were on production. Vermilion anticipates the drilling of between 14 and 16 additional gross operated Cardium wells during the fourth quarter of 2011 and expects to end 2011 with between 55 and 60 net wells on production and have aggregate production volumes in excess of 6,000 boe/d. Installation of several pipelines to transport Cardium production in the Drayton Valley region was completed and construction and commissioning of the 15,000 bbls/d oil processing facility was finished during the third quarter and the facility was brought into service effective August 2, 2011. Wet weather in the West Pembina area reduced fracture stimulation activity in July and August. Drilling operations were only impacted for the month of July.
Production
Average production in Canada increased modestly to 12,987 boe/d during the third quarter of 2011 compared to 12,426 boe/d in the second quarter of 2011. Production additions from our Cardium program served to more than offset natural declines and volumes used in the commissioning of the oil processing facility in Drayton Valley. Production was 16% higher compared to third quarter of 2010 production of 11,233 boe/d. The increase was primarily attributable to production increases from the Cardium program offset by natural declines. Of more significance in today's commodity environment, crude oil and natural gas liquids production now represents nearly 45% of Canadian production as compared to 37% in the third quarter of 2010, reflecting our increasing leverage to liquids production in Canada. Canadian liquids production is expected to show continued growth in the fourth quarter of 2011 as Vermilion significantly increases Cardium oil production toward an anticipated 2011 exit rate of more than 6,000 boe/d.
View our Third Quarter 2011 Earnings Release
Vermilion drilled 14 (11.7 net) operated Cardium wells during the third quarter of 2011 and participated in the drilling of seven (1.9 net) partner wells. A total of 10 gross operated wells were fracture stimulated and six gross wells were brought on production during the quarter. At the end of the third quarter, 28 (24.1 net) operated and 29 (10.2 net) non-operated Cardium wells were on production. Vermilion anticipates the drilling of between 14 and 16 additional gross operated Cardium wells during the fourth quarter of 2011 and expects to end 2011 with between 55 and 60 net wells on production and have aggregate production volumes in excess of 6,000 boe/d. Installation of several pipelines to transport Cardium production in the Drayton Valley region was completed and construction and commissioning of the 15,000 bbls/d oil processing facility was finished during the third quarter and the facility was brought into service effective August 2, 2011. Wet weather in the West Pembina area reduced fracture stimulation activity in July and August. Drilling operations were only impacted for the month of July.
Production
Average production in Canada increased modestly to 12,987 boe/d during the third quarter of 2011 compared to 12,426 boe/d in the second quarter of 2011. Production additions from our Cardium program served to more than offset natural declines and volumes used in the commissioning of the oil processing facility in Drayton Valley. Production was 16% higher compared to third quarter of 2010 production of 11,233 boe/d. The increase was primarily attributable to production increases from the Cardium program offset by natural declines. Of more significance in today's commodity environment, crude oil and natural gas liquids production now represents nearly 45% of Canadian production as compared to 37% in the third quarter of 2010, reflecting our increasing leverage to liquids production in Canada. Canadian liquids production is expected to show continued growth in the fourth quarter of 2011 as Vermilion significantly increases Cardium oil production toward an anticipated 2011 exit rate of more than 6,000 boe/d.
View our Third Quarter 2011 Earnings Release
© 2011 Vermilion Energy Inc.