Direct Oil & Gas Inc. (“Direct” or the “Company”), incorporated June 22, 2017, is a Canadian based private junior oil & gas exploration and production (E & P) company. Direct is well structured with both upstream and midstream assets in its portfolio.
Direct will be developing a number of currently producing, long life oil & gas assets in the prolific Peace River Arch (“PRA”) area of the Western Canadian Sedimentary Basin, in Alberta.
Effective September 1, 2017 Direct acquired upstream and midstream assets which include 1,350 boe/day of producing oil & gas assets and 8 gas plants with associated gathering systems in the prolific Peace River Arch (“PRA”) area of the Western Canadian Sedimentary Basin, in Alberta. The asset base has additional upside from re completions, future drilling and processing. The assets are grouped into the South Peace River area (“South PRA”) and North Peace River area (“North PRA”).
The Operated South PRA assets were comprised of 31 Wells currently producing 425 boe/day with oil comprising 43% of the production. An additional 80 boe/day will be brought on line from workovers in 2018 which will bring the oil weighting of this area up to 52%. The South PRA has significant upside for future drilling. We currently forecast 20 wells to be drilled over the next 4 years which will add 1,300 boe/day and 4.0 mmboe reserves. The South PRA comprises 21,280 gross (19,993 net) developed acres and 5,600 gross (5,456 net) undeveloped acres and 1,280 acres of Royalty Interest lands. The South PRA area includes Cecil, Charlie, Dixonville, Eureka, Habay and Worsley.
The North PRA assets are comprised of 51 operated wells producing 800 boe/day and 9 non-operated wells 125 boe/day. The production is 98.5% gas. The North PRA has upside potential in the gas window which is not being pursued at this time. The area comprises 64,800 gross (50,447 net) developed acres and 9,760 gross (7,708 net) undeveloped acres. The North PRA area includes Chinchaga, Cranberry, Hamburg, Hotchkiss, Lovet, Notikewin and Vista.
Direct will look to leverage our team’s experience into other regions of the Western Canadian Sedimentary Basin as Direct continues to grow.