Painted Pony reports first sales of natural gas from Townsend facility

Painted Pony Petroleum Ltd. reported that the Townsend facility began producing natural gas sales volumes on July 7 with commercial operations beginning on July 10, more than 30 days ahead of Painted Pony's schedule.

The company on Tuesday provided an update on the commissioning by AtlaGas Ltd. of the Townsend facility.

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The early commissioning of the facility has provided Painted Pony the opportunity to accelerate production volume growth in the second half of 2016. Painted Pony expects raw natural gas production volumes through the facility to average approximately 50 mmcf a day during August 2016, 100 mmcf per day during September 2016 and 150 mmcf a day during October 2016. Painted Pony continues to anticipate a 2016 year-end exit production rate of 240 mmcf equivalent per day (40,000 boe per day).

The facility is a 198 mmcf per day natural gas and liquids processing facility located in the Townsend portion of Painted Pony's Montney assets in Northeast B.C.

Based on design, the expected efficiency of the facility is anticipated to improve natural gas liquids (NGL) yields from Blair Creek in addition to allowing for higher production volumes from the liquids-rich Townsend area. As a result, NGL volumes are expected to increase from approximately five per cent of total production volumes currently to approximately 10 per cent of total production volumes in the fourth quarter of 2016. This will result in a 2016 year-end exit NGL production rate of approximately 4,000 bbls per day from current rates of approximately 1,000 bbls per day.

Painted Pony expects the increased NGL production to be comprised of approximately 50 per cent condensate with the remaining volumes to be split evenly between propane and butane.

Painted Pony is pleased that the capital cost of the facility continues to trend below budget as a lower final cost will reduce the capital lease fee amount paid by the company on the facility.

Painted Pony expects to release second quarter 2016 financial and operating results after market-close on Aug. 10, 2016.

-- Daily Oil Bulletin

@ Copyright Pipeline News North

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