From Ju­nior to In­ter­me­di­ate in Three Short Years

Alberta Oil - - OBSERVER NEWS NUMBERS PEOPLE PLACES -

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.

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