June 22nd, 2024

Oil firm says drilling at Glauc C near Medicine Hat exceeding expectation

By Collin Gallant on May 22, 2024.

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Drilling near Medicine Hat by new Glauc C field owner has “markedly exceeded expectations” with extra cash used to pay off debt and fund new work, Journey Energy reported in quarterly financial results released this month.

Journey began four net new wells late last year in the field north of the Medicine Hat which it acquired from Enerplus, bring them to full operation in March.

It plans to convert four water injection wells in the field to polymer-injection sites to further boost production in late 2024.

“With over 30 future locations, along with future water flood and polymer flood expansion potential, Journey expects this field to continue to provide increasing shareholder value for years to come,” reads analysis in the company’s first-quarter results.

The company also completed a $38-million debenture financing deal in March that allowed it to retire $11 million in “vendor-take-back” options on the field and also accelerate a debt payment program with AIMCo.

The remaining $10 million will boost the capital budget for 2024 to $51 million.

Journey is also expanding its electricity production business.

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