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Seven Generations demonstrates improved productivity through innovation

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Hydrocarbon Engineering,

Seven Generations Energy Ltd.'s drilling, completions and facilities teams are applying innovative techniques to reduce costs and deliver improved liquids-rich natural gas well productivity that is helping Canadian energy maintain a competitive edge in the over-supplied North American natural gas market.

"Our ongoing drive for innovation is paying off, and our most recent advances hold additional promise of increased economic performance that will help us profitably grow energy exports, keep Albertans working and attract sufficient capital investment over the life of our liquids-rich natural gas project near Grande Prairie," said Pat Carlson, 7G's CEO.

7G liquids-rich natural gas sales about to step up on Alliance Pipeline

"On 1 December, we take the first tranche of new firm transportation capacity on Alliance Pipeline to the Chicago area market – 250 million ft3/d of liquids-rich natural gas. Our most recent Kakwa River Project Nest 2 wells are now delivering greater volumes of high-value condensate and liquids-rich natural gas, at lower cost, which will help us fill our new pipeline transportation capacity – a big first step in our plans to continue building shareholder value through production growth and increased energy exports to the US Midwest," Carlson said.

"November marks the start of winter heating season and this month North American consumers are enjoying the most affordable wholesale home heating prices since the late 1990s. That's due to remarkable engineering, geology and operational advances that have added vast new supplies of cleaner burning natural gas to North America. 7G positions itself to be among the continental leaders in energy development innovation and our most recent improvements in well optimization are helping Albertans deliver affordable supplies of natural gas to consumers," Carlson said.

Seven Generations to be included in the MSCI World Index

On Thursday 12 November 2015, MSCI Inc. announced that Seven Generations Energy has been added to the MSCI World Index. This inclusion will be effective at the close of markets on Monday 30 November 2015. The MSCI World Index represents large and mid-cap equity performance across 23 developed countries, covering approximately 85% of the free float-adjusted market capitalisation in each. This index offers a broad global equity benchmark.

CEO Letter to Shareholders on 7G website

Seven Generations published a CEO Letter to Shareholders that provides the Company's latest economic assessments, a thorough discussion of operational and productivity improvements over the past year, explanations of innovations that are being tested and under consideration, plus a series of answers to the most frequent questions from shareholders.

Updated type curves highlight improved well productivity

The CEO Letter also contains management's new best estimate type curve, which illustrates well productivity improvements in the year since Seven Generations began trading publicly. At recently observed commodity prices, the Company estimates that it has been able to reduce the cost required to supply natural gas to the continental North American market by approximately US$1.00 per million Btu. This allows for sustained investment in the Kakwa River Project despite the continuing low commodity prices that have created a difficult economic environment. These updated type curves were used to set 7G's 2016 capital investment plan of US$1.10 billion to US$1.15 billion, which represents a 15% reduction from the 2015 capital investment plan. According to Alberta Finance economic multipliers, 7G's 2016 capital investment level is expected to generate more than 4000 jobs and result in more than US$400 million of labour income. 7G's production in 2016 is forecast to be between 100 000 and 110 000 boe/d - an 80% increase in production from the company's forecast 2015 production.

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