Prospera announced the spudding of the first horizontal well of the ten well modular multi-pad infill drilling program in the latter part of this week. Close to a hundred services have been coordinated along with lease preparation, permits and licenses.
This modular multi-pad infill drill program stems from a comprehensive geological, seismic, and reservoir management delineation designed to optimize recovery with optimum wells in a cost-effective manner while also aligning with planned enhanced and improved recovery techniques. This ten well program can approximately add an additional 750 bpd at a low decline to Prospera’s current 900+ boed. This modular development is intended to accelerate production and recovery to capture the significant remaining heavy oil reserves (400 million bbl).
The medium-light oil spud will follow the heavy oil horizontal well transformation from vertical wells in the latter part of this month. These slanted drills are awaiting the preparation of the new leases, surface facilities and connecting pipelines. The medium-light oil development entails six to eight directional wells that can add an additional 600 bpd (gross) at 50% WI diversifying Prospera’s product mix and improving margin.
Overall, this phase 2 development plan will allow Prospera Energy to become a low-cost producer with a significant increase in production. Meanwhile, PEI will continue to execute its liability management plan to reduce the asset reduction obligations and minimize its environmental footprint. This involves efforts to reduce and eventually eliminate emissions, alongside pursuing innovative ESG methods to enhance API quality, thereby achieving higher margins and eliminating the need for diluents.