>>22874700>>22874685more about Logan, they just completed the commissioning of a 10,000boe/d plant at their Pouce Coupe asset. They're currently producing about 3,500boe/d there and they expect to ramp up to 8,000boe/d by the end of the year, and then keep production at 8,000-10,000boe/d for the next 10-15 years.
The Simonette asset produces about 6,000boe/d and has infrastructure in place to support over 20,000boe/d so they have egress to just drill and fill there. That recent Simonette Duvernay well I talked about in the previous post is a top 1% well in the WCSB, which is not that surprising when some of the neighbors (namely Kiwetinohk) have also been producing top decile well results. Logan has about 50 locations at Simonette Duvernay so they could probably increase production to 10,000boe/d there as well and keep it steady for 10-15 years.
Then they have two other Duvernay assets that together have another 100 locations. They are also in the oil window and should have good wells, but maybe not as amazing as the Simonette. These areas are undeveloped but they have a well coming online at Ante Creek this Summer so I'm looking forward to the results there. The reservoir thickness is comparable to their Simonette but the pressure is lower. Their Two Creeks asset is right next to Chevron's Duvernay assets which CNRL bought last year, that area is high quality and well derisked by the neighbors.
I don't think the market is expecting the liquids production to increase so there is a potential information arbitrage in buying down here. I think there's a good chance many of these Duvernay locations will end up producing in excess of 400,000 barrels of liquids in estimated ultimate recovery. The Duvernay inventory is almost entirely unbooked in the reserves. I also think there's a good potential for future value creation with organic acquisitions. The Spartan guys have always been expert at buying acreage for cheap and then developing that into something valuable.
