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Advantage Oil & Gas Announces Oil Discovery

Advantage Oil & Gas Ltd. announced that a significant Montney light oil pool has been discovered and appraised at Progress, Alberta, Canada, on the Corporation's 47 net section block of 100% owned lands. This discovery elevates the Progress asset to be a primary element of the corporation's near-term liquids development program.

Advantage has drilled four successful Montney wells to date at Progress, with the most recent located at 16-36-76-10W6 demonstrating average production test rates over 2,100 boe/d (62% liquids). The 16-36 well was drilled to a measured depth of 5,268 meters with a lateral length of 2,867 meters. Following fracture stimulation using approximately 2 tonnes of sand per meter, the well was flowed-back on clean up then subjected to a 72-hour production test at the end of the operation.  

The test results were as follows:
•    Production rates and pressure were increasing throughout as the well continued to clean up.
•    Average oil rate during the 72-hour test was 1,038 bbls/d (43-degree API oil).
•    Average gas rate during the 72-hour test was 4.9 mmcf/d.
•    Recoverable natural gas liquids entrained in the gas were approximately 290 bbls/d based on the average gas rate during the 72-hour test, using Glacier Gas Plant recoveries.
•    Average flowing pressure during the 72-hour test was 5,168 kPa, increasing throughout.
•    H2S content averaged approximately 0.1%.

Two of the previous three wells drilled at Progress were in the same layer (D3) and demonstrated similar combined oil/NGL yields. The 16-36 well was completed with an updated frac design, which is considered by Advantage to be a significant factor contributing to the high liquids yield and overall productivity. The Progress lands were acquired over the last five years and appraisal began in 2017. The four wells delineate the entire Progress land block and confirm the extensiveness of the oil accumulation.

The 16-36 well was shut-in for equipping and tie-in on Sept. 2. The asset will be tied-in to Advantage's 100% owned Glacier Gas Plant for gas processing and liquids extraction, making use of existing surplus plant capacity and an existing section of an unused Advantage pipeline. The tie-in and equipping of the wells are targeted for completion by November 2019.