February 23rd, 2024

Oil firm plans more Glauc C drilling in 2024

By Medicine Hat News on December 28, 2023.

medicinehatnews.com@Medicine Hat News

More drilling is planned for the Glauc C field near Medicine Hat early in the new year after a successful 2024 campaign, according to Journey Energy.

The majority owner and operator of the field reported on Dec. 21 that it completed four wells in the area near the city over the last 12 months below cost at $5.4 million.

That increased total output by 550 barrels per day, or about 20 per cent, of the field three-quarters owned by Journey since late 2022.

“These wells have markedly exceeded expectations with respect to both costs and results,” reads a release outlining capital plans. “Based upon these results both Journey and its partner have begun planning a second program for the first quarter 2024.”

The firm states it has 30 potential water or polymer injections sites identified, and has scheduled adding 2.9 net wells at Medicine Hat in the first quarter of 2024.

The company also stated that two power projects in development at natural gas sites in northern Alberta are proceeding.

About $6.2 million of the company’s $41-million capital budget for 2024 is related to drilling, with the remainder to seismic, abandonment and the power projects.

It forecasts a US$75 price for West Texas Intermediate and C$2.75 for AECO natural gas.

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