CALGARY, September 4, 2014 – Citadel Drilling Ltd. (“Citadel”) and Seven Generations Energy Ltd.(“7G”) are pleased to announce that Citadel’s Rig 1 has commenced drilling on 7G’s Kakwa River Project targeting the Montney formation. This development is an important step forward for both companies, providing Citadel with the opportunity to further advance its technology and allowing 7G to more effectively develop its tight liquids rich gas resource.
Rig 1 is Citadel’s first of a fleet of modern Technically Advanced AC Triple (TA²CT) land-based drilling rigs. Designed specifically for drilling deep, land-based pad wells, ideally equipped for 7G’s Triassic Montney resource play, the TA²CT rigs have been designed to optimize drilling programs and reduce expensive downtime and labor costs for clients. In addition, the rig addresses the ongoing needs of oil and gas producers that require safe, programmable, efficient rigs with high pressure drilling capabilities and increased horsepower pumping capacity. To operate this advanced drilling rig, Citadel has recruited a crew of rig technicians that in aggregate hold approximately 135 years of prior alternating current (AC) deep drilling experience.
7G’s Kakwa River Project is presently dominated by development of the tight, liquids rich Montney resource situated at a depth of 2,800 to over 4,000 metres below the surface. 7G is presently developing the Montney from multi-well surface pads, with wells having up to 3,000 metres of completed horizontal lateral length, and strives to identify and advance technologies to cost effectively enable even greater lateral reach. The addition of Citadel’s Rig 1 brings 7G’s contracted fleet to 9 rigs in total.
Citadel’s CEO, Dan Hoffarth, said, “7G is a perfect fit as our first customer for the new TA²CT series rigs. The rig is designed for the technical challenges presented by 7G’s Montney. Further, with its innovative corporate culture, 7G is the ideal partner to work with us to prove and advance our products.”
Barry Hucik, 7G’s Vice President, Drilling, said, “We are pleased to welcome Citadel Rig 1 to our fleet. We anticipate that Rig 1 will be a significant step along the path to our objective of reducing costs while extending horizontal reach, enabling us to develop more resource with less surface land disturbance. We also look forward to welcoming Citadel’s Rig 2 and Rig 3 to our fleet as we ramp up our activity this fall and into 2015.”
About Citadel Drilling:
Citadel is a private company founded in March of 2013 with the objective of presenting to the Canadian market a focused Company with state-of-the-art AC triple drilling rigs that are designed to drill 4,500-7,500 meter vertical and horizontal plays in western Canada. Rig 1 is Citadel’s first rig. Rigs 2, 3, and 4 are currently under construction.
About Seven Generations Energy:
Seven Generations Energy Ltd. (“7G”) is a private, Canadian company engaged in the development of the Kakwa River Project (the "Project"). Located approximately 100 kilometers south of Grande Prairie, Alberta, the Project is a tight liquids rich gas and light oil project in the early stages of development. It contains an estimated potential production capacity of more than 2 billion cubic feet per day of natural gas and more than 200 thousand barrels per day of natural gas liquids, including condensate. 7G has a corporate headquarters in Calgary, Alberta and an operations headquarters in Grande Prairie, Alberta.