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The Kakwa area is situated approximately 75 kilometres south of Grande Prairie in west central Alberta.
Capital investment in Kakwa totalled $3.6 million for the 2023 year (2022: $11 million) with daily production averaging 1,536 boe/d (2022: 1,404 boe/d) comprising of 4.7 MMcf/d of natural gas (2022: 4.2 MMcf/d) and 753 bbl/d of condensate and natural gas liquids (2022: 720 bbl/d). Total proved and probable reserves as of December 31, 2023, were estimated at 25.0 MMBoe (2022: 28.4 MMBoe) with a before tax NPV-10% of $178.6 million (2022: $247.2 million). The Company currently holds 40,320 (17,700 net) acres in the Kakwa area.
During the quarter, the operator tied-in three (0.75 net) wells recently completed at Kakwa Central. Gross production from these wells over the first thirty days is approximately 2,755 boe per day consisting of 6.8 MMcf per day of natural gas and 1,625 bbls per day of condensate and natural gas liquids. The Company holds a 25% interest in these wells. While the initial rates are encouraging, they are not indicative of the long-term performance or ultimate recovery.
The Company committed to a three (1.5 net) well program at Kakwa North. The wells spud early in the fourth quarter. Questerre holds a 50% interest in these wells. Subject to the timing for completing these wells, they are scheduled to be on production in the second quarter of 2025.
