Production from the assets owned by Chinook in the Grande Prairie District represented approximately 38% of Chinook’s production during the first quarter of 2016. Chinook held an approximate 54% average producing working interest in such assets as of December 31, 2015. The assets in the area are largely operated. Chinook held 124 (79 net) section of land in the Grande Prairie District as of December 31, 2015.
Gold Creek and Knopcik areas have emerged as part of the Montney fairway prone to oil and very liquids rich gas. Chinook’s land is situated along the boundary between the Montney Wet Gas and Oil Window.
With six established Dunvegan/Doe Creek oil pools, Chinook is utilizing horizontal drilling techniques to develop new oil pools and extend the producing life of mature pools in the area. Chinook has successfully drilled approximately 20 gross horizontal Dunvegan wells since mid-2013.
Purchased in December 2012, Chinook’s Albright and Beaverlodge area was attractive because of its producing Dunvegan oil pools. Since acquiring Albright, Chinook has drilled 10 new horizontal oil wells (8.0 net), completed one work-over and one recompletion. Chinook anticipates that when favourable commodity prices return that it will continue with its Dunvegan development drilling program at Albright/Beaverlodge where it plans further activity across four additional Company-owned Dunvegan pools.