Production from the assets owned by Chinook in the Grande Prairie District represented approximately 42% of Chinook’s production during the third quarter of 2015. Chinook holds an approximate 50% average producing working interest in such assets. The assets in the area are largely operated.
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. Numerous wells have been licensed and drilled recently offsetting Chinook’s lands with reported oil test rates up to 1,500 bopd (3,500 BOE/D) with condensate ratios up to 200 bbl/mmcf. Chinook owns more than 50 gross sections (35 net) of Montney rights in the Gold Creek area.
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. Large undeveloped land base of over 300 net sections of land supports multi-year drilling inventory and ability to expand and accelerate development drilling programs. Chinook has an additional 60 gross (40 net) locations within it inventory.
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 maintains a drilling inventory of more than 20 (18 net) Dunvegan locations.