Return Energy’s main focus is on its 100% owned and operated Rycroft oil & gas property, fifty kilometres north of Grande Prairie, Alberta, where it currently produces in excess of 300 BOE/day of light oil and natural gas. The Company has just completed (in Q1 2018) drilling the first two of its Triassic Charlie Lake development wells. Both wells successfully tested light, sweet oil in two distinct members within the Charlie Lake formation.
The first well, drilled at 14-27-76-6W6M, encountered the Braeburn dolomite of the Charlie Lake formation and, after fracture stimulation, tested 125 BOE/day of light (370 API) sweet oil and associated natural gas. The vertical well is currently being equipped with artificial lift to recover the remaining 1500 barrels of load fluid from the fracture stimulation and commence production. Planning is also underway for the installation of a pipeline to connect the solution gas from 14-27 to the Company’s wholly-owned and operated Rycroft gas plant and, once connected, the well will be capable of producing without restriction. Pipelining operations are expected to commence post spring break-up. Thirteen (13) additional drilling locations targeting the Braeburn dolomite have been identified on Return’s existing land holdings.
The second vertical well in the program, drilled at 6-34-76-6W6M, penetrated a 5.5 metre thick Charlie Lake dolomitic siltstone zone approximately thirty metres above the Braeburn member. After fracture stimulation, swabbing operations resulted in light (380 API) sweet oil rates of approximately 45 barrels of oil per day (against a back pressure of 4800 KPa). This sets the stage for a future horizontal drilling program using multi-stage fracture stimulation technologies. This same zone is the target of a large-scale horizontal drilling campaign immediately west of Return’s acreage that has been developed and advanced by several third parties over the last four to five years. Twenty two (22) horizontal drilling locations targeting the Charlie Lake dolomitic siltstone have been identified to date on the Company’s existing land holdings.