Crescent Point Energy Corp. (NYSE:CPG) Q3 2023 Earnings Call Transcript

So really, what that’s telling you is there’s no real natural fracture barriers between the benches within the play. So what we’ve been doing is drilling the wells at the bottom of the sea and then hitting them with a very modern completion style, a modern frac, call it, 3 tons per meter. And then because that pressure gradient doesn’t change on us and no natural frac barriers in there, it allows us to fracture through the C, the B and into the A. So you get very good vertical height growth within the completion. You don’t get as much horizontal growth or half-length growth but certainly get a lot of vertical growth. And that has led to some very, very encouraging results here in the near term. So look for us to continue to push this as we continue to develop it.

But so far, so good. And then the other thing with this is, as we space the wells in particular in Gold Creek West, because of the vertical height growth and maybe not as much of the half-length, it may allow us to tighten up that spacing a little bit tighter, which would ultimately add to well inventory. But we’ll slowly dip our toes into that as we see results that dictate. So Ryan, I don’t know if you had…

Ryan Gritzfeldt: Yes. I’ll actually maybe add even on the cost side, like Craig said, what’s key is we’re getting consistent repeatable results and on budget. And an exciting thing for us, we’ve switched over our rig in the Montney to another rig. It’s a walking double rig, has lots of advantages, larger pumps, higher hook loads, et cetera, et cetera. And we think with time, we’re going to be able to shave a day or 2 off of our drilling days and continue to decrease our costs. So excited to do that as well.

Shant Madian: Great. Thanks, guys. Shifting to Kaybob, a bit on the topic of well spacing. One question here specifically, how do we think about infill spacing here versus the prior operator? Typically either by phase windows or how we’ve approached it since in play.

Craig Bryksa: I can start and Ryan can add some color. So when you think of when we entered the play in 2021, we had our well inventory spaced fairly wide at 600 meters. When you look at maybe some of the other operators in the area or even the previous operator that we picked the asset up from, they did space wells fairly tight and creeped in fairly tight. And we could see that from a lot of that, there is some inter-well interference and that’s why we took that wider stance. Over the last basically 12 to 18 months, we’ve slowly been creeping in. So you’ve seen us move, in particular, in the volatile oil window into that from 600 meters into 500 meters. And we’ll see how things play out on that. The results are very encouraging.

And even that last pad I just mentioned, that pad at 1,500 BOE per day is spaced at that level. So look for us to maybe slowly tighten this in a little bit more and see how they get. And then the other thing I would say, in each of the different phase envelopes, there’s fairly different pressure regimes as well. So the spacing might be different between each of those, and that’s reflected in how we’ve been drilling. But the idea is to slowly creep in, make sure we’re comfortable and then start to optimize. So things on that front have been really looking good. And Ryan, I don’t know if you want to…

Ryan Gritzfeldt: Yes, I don’t think I have much to add to that other than like Craig said, it definitely depends where you are in the play. We have very rigorous detailed reservoir models that we continue to update with the results that we’re getting. And so far, we like what we’re seeing with our current spacing plans.

Shant Madian: Thanks, guys. A follow-up to that specifically on Kaybob as well. Any plans to develop on the western side with the volatile oil sections?