Greenhui, May 17 | New Era Energy (00166.HK) announced that as BC in Canada is going through one of the worst and earliest wildfire seasons in history, the BC government recently imposed an evacuation order for the Group's oil and gas production sites in the Greater Sierra region (“GSA”) and Horn River Basin (“HRB”).
As a result, the Group has safely evacuated all affected personnel and temporarily shut down GSA and HRB combined daily production of approximately 8,500 barrels of oil equivalent natural gas. According to information currently available to the company, the Group's GSA facility was partially damaged during the wildfires. Under safe and approved conditions, the Group will re-enter the site as soon as possible, assess losses, and launch relevant plans to resume GSA and HRB natural gas production. The Group's losses due to the wildfires are partly covered by insurance. However, the exact amount of compensation covered by the coverage (including business interruption) is yet to be assessed.
Currently, the Group plans to drill the first of 10 oil well plans in Alberta's West Gold Creek area, and the expected excavation date (fourth quarter 2024) remains unchanged. Each drill well will include an unconventional two-mile fracturing level oil well. West Gold Creek's planned oil well is located in the famous and highly sought after Montney Formation in Canada's western sedimentary basin. The Group's total proven plus summary (2P) reserves at the four official locations of West Gold Creek are estimated at 5.8 million barrels of oil equivalent, including about 45% of oil, 45% of natural gas, and 10% of natural gas liquid.