Canadian junior sets major drilling program

Gary Park

Petroleum News Calgary correspondent

Junior E&P company Endev Energy is poised to launch a drilling program in the Majorville area of southeastern Alberta, including 50 wells this spring.

So far, 21 wells have been drilled and cased and are ready for completion and tie in, likely in July. Assuming upbeat results, Endev plans a 90-well program in the same area, hoping for tie-ins in the final quarter. The company’s production grew by 189 percent in the first quarter from a year earlier to 3,428 barrels of oil equivalent per day, stemming from increased gas output from the Majorville area. Gas volumes were up by 82 percent to 14.45 million cubic feet per day, boosted by a C$22 million takeover in mid-2003 of Moxie Exploration. Endev’s capital budget for 2004 is C$32 million, financed from available bank credit, existing working capital and cash flow, with C$22 million tagged for the core southeastern Alberta area.