Chinook Energy provides Birley/Umbach operational update
Thursday, Sep 21, 2017
Chinook Energy Inc. is pleased to provide the following operational update on its Birley/Umbach property.

During the second quarter of 2017, Chinook successfully completed a four well (3.63 net) (the a-81-F, b-90-G, 02/d-5-K, and b-14-K wells) drilling program at Birley/Umbach with average drilling costs of approximately $1.55 million per well ($1.38 million, net). The wells were subsequently completed during the third quarter of 2017, at an average cost of approximately $2.69 million ($2.43 million, net).

The gross test results for the four wells are as follows (1):

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Chinook is encouraged by the results of its recent wells and new completion design which included more frac stages with less proppant per stage (from 65 tonnes/stage to 55 tonnes/stage) and tighter frac spacing (from 65 metre to 52 metre frac spacing). Chinook completed these wells using a 'zipper frac' technique whereby adjacent wells are fracked in an alternating stage sequence. This technique assists adjacent well fractures to avoid each other while maximizing the exposure of new reservoir rock. Chinook anticipates incorporating this new completion design into its future drilling operations.

The new wells will be equipped in October with the a-81-F and b-90-G commencing production at restricted rates at that time. Chinook continues the construction of its compressor expansion at Birley/Umbach which will see its capacity at this facility increase from 25mmcfd to 50mmcfd of raw natural gas. The expansion is expected to be completed in early December and the 02/d-5-k and b-14-k wells brought on at that time.

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