Gear Energy Ltd. is pleased to announce operational highlights for the third quarter of 2015 and revised capital guidance for 2015.
2015 Operational update
•Stable field production of approximately 5,500 boe/d was realized during the third quarter of 2015. Estimated sales production for the quarter came in slightly lower at 5,385 boe/d due to temporary production shut-ins and shipping deferrals implemented during the anomalously low heavy oil price experienced in September. Gear expects to accomplish the existing production guidance of 5,700 to 5,900 boe/d for calendar 2015. Gear's October realized oil price is currently estimated to increase by approximately $10/bbl over the low September value, due to an improvement in heavy oil differentials into the fourth quarter.
•Gear drilled six wells during the quarter bringing the year to date drill count to eight in total. The drills include three dual lateral and two single lateral horizontal wells in Morgan, one horizontal well in Paradise Hill, a dual lateral unlined horizontal well in the GP at Wildmere and a quad lateral unlined horizontal well in the Cummings at Wildmere. In total, Gear invested approximately $10.5 million in capital through the first three quarters of 2015 including: the eight drills, 20 recompletions, and approximately $2 million in land, seismic and infrastructure. The last 60 days of production resulting from these activities has averaged approximately 1,100 boe/d, yielding a company record capital efficiency of under $10,000/boe/d.