I3 Energy announces completion of drilling at second Martin Hills well

Summary 

• I3 Energy has completed the drilling of its second well at Marten Hills, 02-12-075-26W4. With this, the first phase of drilling at this acreage in Alberta, Canada, is complete.
• Production at this and another well, whose drilling was completed last month, is expected to start in July-end.
• The company plans to start the second phase of drilling after completing the evaluation of log and production data from the two new wells.

AIM-listed independent oil and gas company I3 Energy PLC (LON: I3E) (TSX:ITE) announced today morning that it had completed its drilling operations at the second well at Marten Hills Clearwater in Alberta, Canada. With this, the company has completed its drilling activity at the well. The drilling was completed on time and within its allotted budget.

The news comes just days after the announcement of its maiden special dividend at 0.16 pence per share and the recent acquisition of energy company Cenovus Energy for CA$ 65 million, which was a part of its growth strategy.

Also Read: D-Day: I3 Energy announces maiden dividend and successful corporate strategy execution

Martin Hills operational update

The second well at Martin Hills, located at 02-12-075-26W4, targeted the 25 meters thick Clearwater C sandstone zone. The company completed the drilling of eight lateral horizontal sections that were approximately 12,644 meters in length. The drilling operations penetrated the reservoir to a maximum true vertical depth of 630 meters.

Evidence of oil on cuttings in the drilled laterals confirmed the presence of oil in the well.  Further, clean upper shore face sandstone, having porosities in the range of 24 per cent to 27 per cent, was also found in the well.

I3 Energy added in its update that the rig is now demobilized, though the tie-in and equipping of the well will take another five days or so.

The company had announced the completion of drilling at its first well, 01-12-075-26W4, at Martin Hills on 30 June. The laterals at the first well had also encountered clean upper shore face sandstone, having porosities between the range of 24 per cent and 27 per cent.

The company stated that production from both the new wells at Marten Hills is expected to start later this month.

Also Read: I3 Energy improves Q2 production, finishes drilling in first Marten Hills well

Second drilling phase plans

I3 Energy CEO Majid Shafique said that this is the first phase of drilling at the Marten Hills Clearwater acreage, and the company plans to start the second drilling phase after the evaluation of log and production data is completed from these two drilled wells. The second phase is expected to target seven more possible locations.

The latest operation update is in line with the company’s recently released corporate strategy presentation, highlighting its focus on continuing incremental drilling in core locations.