- Our 2014 drilling program in the TMS has been largely successful year-to-date. As the last three wells, one Encana operated and two non-operated brought on production are meeting or exceeding our expectations and normalize for a 1,000 foot lateral length basis. We are currently operating two rigs in the play. During the quarter, we entered into an agreement with a third party to help accelerate our evaluation of TMS. We still hold approximately 200,000 net acres in the play with an average working interest of 91% where we are focused in the central and eastern portions of our original land base. This allows us to realize some immediate value from our large land holdings in an area and focus our activities on areas where we can best develop rather than having to drill wells for simple land retention.
- Recently we have seen significant drilling ramp up by industry in the TMS. This is good news for us because having multiple companies operating in early life resource play, accelerates the appraisal and assists in unlocking its full potential.
- Jeffrey Campbell - Tuohy Brothers Good morning. The first thing I wanted to ask is if you could remind us of your expectations for the TMS that were exceeded in the most recent operated and non-operated wells? Doug Suttles - President & CEO Thanks Jeff. I will ask David Hill, who is our EVP for Exploration and Business Development to pick that up. David Hill - EVP for Exploration and Business Development Excuse me, hi Jeff. We have one well that's on here in the first quarter and that well is continuing to perform with us on the type curve and two other wells that are non-operated by Encana, also continue to hit the type curve. So these are the first three well that have had significant production in the first quarter. So we are very encouraged at normalized per thousand foot that these well are hitting type curve for us.
- Brian Singer - Goldman Sachs Great. Thank you. And then lastly following up on the Tuscaloosa Marine Shale question earlier, when you mentioned your operating well was performing above expectations, can you just remind us what your base case is, that is perfuming above in terms of well cost and well performance? Doug Suttles - President & CEO Yes, regarding performance, again early days, less than -- right around 30 days on production, but the type curve that we are seeking to achieve here is about 730 million barrels and from well cost perspective that's an early well, so we aren’t really comparing well cost to our RPH method at this time, but we are really focused in on well performance.
Wednesday, May 14, 2014
Encana Earnings Call
The TMS highlights from the Encana earnings call: