From Junior to Intermediate in Three Short Years
Raging River’s output has turned into a torrent – from 1,000 barrels of oil equivalent per day (boe/d) three years ago to 14,000 boe/d in 2015. And, unlike its rivals, it hasn’t laid off staff during the price slump.
In Q3 2015 it broke yet another quarterly production record, hitting 13,418 boe/d (97 per cent oil), a 26 per cent jump from Q3 2014. Matching its oil output, Raging River’s funds from operations flowed too, generating industryleading earnings of $8.81/boe.
Raging River’s success comes from finding oil and cutting costs. Its horizontal wells were drilled at a 99 per cent success rate and it drove spud-to-spud time between wells down to 2.75 days. Its onstream costs averaged $700,000 per well in 2015 – 22 per cent lower than 2014 – slashing operating and transportation costs to $10.51/boe for its ninth consecutive quarter.
The company continues going for growth, buying lands in its core development areas near Kindersley, Saskatchewan, and signing a letter of intent to acquire 13 sections of undeveloped land in its Dodsland, SK operating area.
The intermediate company aims to expand again next year if WTI price holds at or greater than US$40/barrel, investing $180 million to $200 million, with target production growth of five per cent at WTI US$45/barrel and seven to 10 per cent at WTI US$55/barrel.