The emergence of the holiday season stung many North Americans with up to -40 C temperatures and record snowfalls. Thank goodness for natural gas furnaces. During the first week of January, I toured our gas capture project in Evesham, Saskatchewan during which time I observed significant amounts of flaring. I was pleased to see the plant startup and realize some satisfaction seeing solution gas compressed and cleaned, to be sold as natural gas.
The Saskatchewan project is on stream… and so is our first recurring revenue stream. And that is a Happy New Year blessing for Angkor!
Our latest press release describes the early stages of activation. The ground engineering team on site continues to fine tune the equipment as we ramp upwards to normal production thresholds in the coming months, standard in all plant start-ups. I was amazed to see and refresh myself about all the equipment that make up this facility and wells (valves, pipes, burners, dehydrators, separators, compressors, pumps, meters, condensers, and more). We push a button on our thermostat and don’t appreciate the science it takes to crank up the heat in our homes!
Early reports are positive, but we cautiously recognize the challenges of winter temperature changes, and expect several weeks to get all the kinks out and add each of the 26 wells that are under the current pipeline. It’s still very early but the initial wells produced about 200,000 cubic feet per day. We expect to reach 400,000 - 500,000 cu ft/day once we reach steady production. Naturally, it is exciting to extrapolate what the total volume might be from all the wells. These volumes should generate considerable monthly revenue for ANK.
Energy continues to dominate conversations across the globe. Whether we choose to recognize it or not, Canada has done an amazing job of moving energy forward and I reminded myself that we often take the many steps in our energy sources for granted. It was truly humbling to tour the field of some 26 wells, to see the collection system and the processing equipment and knowing the expertise is in place to manage it. The activities of those professionals that explore, develop, produce, and operate deserve our respect and recognition. These are the people that stand proudly and tell me their containment measures mean they collect every drop; they look to no venting or flaring of gas to the atmosphere; and they troubleshoot, repair, and nurse along every well whether it is -44 C or +25 C.
Ultimately, the team has taken a facility and pipeline structure that if new, would cost well beyond $6 million CAD today, and have refurbished and upgraded it to handle up to three million cubic feet per day (MCF). The project reduces carbons being vented to the atmosphere and increases clean natural gas to Canadians!
It is a gradual increase adding one well at a time along with the upgrades, but this methodical process really does optimize the resource sector, both economically and environmentally. We look forward to pursuing more of this type of project.
Positive things are taking place over in Cambodia as well. On the Andong Meas license, we have one crew conducting magnetics at Canada Wall / South Creek and another crew is trenching at Wild Boar on a gold anomaly.
Angkor’s VP Exploration, Dennis Ouellette, maintains his excitement as the crews get back to work in 2023. He is currently preparing a presentation to Ministry of Mines and Energy to update them on our progress on Andong Meas, Oyadao North and Andong Bor.
Regarding oil and gas in Cambodia, our negotiations with the Cambodian government resumed the first week of January with Mike and the Director General of Ministry of Energy. We remain hopeful a decision to move this forward will be reached soon.
With that, I leave you with a heartful Happy New Year. I hope your holiday seasons were rewarding and reinvigorating, and the future brings all the best of what 2023 has to offer!
Early reports are positive, but we cautiously recognize the challenges of winter temperature changes, and expect several weeks to get all the kinks out and add each of the 26 wells that are under the current pipeline. It’s still very early but the initial wells produced about 200,000 cubic feet per day. We expect to reach 400,000 - 500,000 cu ft/day once we reach steady production. Naturally, it is exciting to extrapolate what the total volume might be from all the wells. These volumes should generate considerable monthly revenue for ANK.
