Glauc C oilfield operator to drill new wells, spend on recovery
By MEDICINE HAT NEWS on April 14, 2023.
https://www.medicinehatnews.com@MedicineHatNews The new operator of the Glauc C oilfield near Medicine Hat has announced it will drill four new wells in the play as well as put $8 million toward enhanced recovery work. Journey Energy acquired control of the field from Enerplus late in 2022 in a deal for three quarters of the field’s working interest, increasing its daily production by about 3,000 barrels of oil equivalent per day. This month its 2023 capital guidance states the Calgary-based junior exploration firm expects to end 2023 in the 12,500 to 13,000 boe/d. It will spent $63 million, including a third on production growth, after reducing debt in 2022 and changing some terms with its major lender, AIMCo. Nine new wells are planned including five in central Alberta, and additional polymer and water flood injection work is planned to begin in the late second quarter near Medicine Hat. Journey is also advancing an electrical power plant near a gas battery near Sylvan Lake in its power division, which includes operation of a power plant at Countess. Journey benchmarks West Texas Intermediate crude price at US$75 for the year with a differential of US$15 for Western Canada Select, and an AECO natural gas average price of C$3.75. The City of Medicine Hat exited the Glauc C field in 2021, selling its 27 per cent non-operating interest to private exploration company Cache Island. 9-8
