IPC’s capital spending hike will include drilling play at CFB Suffield
By Medicine Hat News on May 9, 2019.
International Petroleum has boosted its Canadian capital budget this year by an additional $22 million with new portions earmarked for its oil recovery drilling program on the CFB Suffield block. It would bring the number of wells planned for the area to 25, including previously announced 17 developmental wells and eight more polymer injection sites related to enhancing reserves and recovery. The Canadian-Swedish global producers also announced in its first quarter financial update on Wednesday that colder Canadian winter hurt gas production at the sprawling drilling area northwest of Medicine Hat, but that was more than offset by higher prices in the quarter. IPC took control of the area in early 2018 and later in the year completed its acquisition of Alberta heavy oil producer Black Pearl Resources. An initial capital program guidance of US$166 million for 2019 will increase to US$188 million. Drilling completed at Suffield thus far is “in line” with expectations while the oil recovery study and a gas optimization program are also proceeding. On Tuesday, IPC also disclosed it has identified two potential new conventional oil plays on Black Pearl acreage in northern Alberta. Five more wells to survey the pool will be drilled there this year. The company also has operations in Malaysia and Netherlands. It reported operating cashflow of US$83 million for the first three months of 2019. 10-9
