Craig Bryksa: Yes, good question. For the most part, the open hole multi-laterals work as we’re pushing the edges of the play, specifically where we kind of lose the frac barrier to the overlying water bearing lodge pole formation. So in our core, the conventionally frac wells, I think will still give us the best results. But it’s when we start pushing the boundaries specifically to the North and to the Northeast, that’s where we’re getting these really good results. The last open hole multi-lateral we brought on into March, it’s been two months now in and around that 225, 250 barrels a day. So continuing to get great results, it’s increased our inventory in the plate, and like we said in the Investor Day, this is an inventory that we’re going to rush out and add rigs, but it definitely will help us maintain our production levels in the play and extend our drilling inventory life.
Operator: Thank you. Your next question comes from Aaron Bilkoski with TD Cowen. Please go ahead.
Aaron Bilkoski: Hi, good morning, guys. My question is on the CapEx associated with the assets that you had sold. I guess, am I correct to assume that you were planning to spend roughly $50 million there?
Craig Bryksa: Good morning, Aaron. When you look into the five-year plan, so beyond 2024, we had about $50 million allocated to those assets. So from 2025 to 2028, it was about $50 million a year. When you look at 2024 with us going through the disposition process, we had a very minimal amount of capital allocated to that. I want to say had the assets still been with us this year, we would have spent a minimal amount somewhere in that neighborhood of $15-ish million, I want to say. I think in and around there in the back half of the year, and mainly most of that was allocated to flatly. But no, your assumption is right. Moving forward, it would have been around 50 in the five-year plan per year. This year was only about 50-ish.
Aaron Bilkoski: Got you. So as I look ahead to 2025, you have seems like roughly $50 million in unallocated capital. Where do you see that going? It’s not enough to obviously add another rig, but do you use that to squeeze out a few more Montney and Duvernay wells, your pace of drilling and completion may be running a little bit faster than you had budgeted.
Craig Bryksa: Yes. And we’ll see how that goes. And Aaron, like mentioned earlier on the call, the cadence of operations has been good. Our team is just off and running, in particular with Montney. And I’m excited, and I know Ryan is excited with how the performance has been. We actually — we just ended up clipping a pace setter well for us here about a month or two ago, that was basically 11 days. So it certainly tightened the timeframe on how fast that we’re drilling the wells, which is good because that drives your capital structure. When you look within the five-year plan, we’ll spend some time here over with now having the disposition done, and through the summer on looking at capital allocation across the portfolio, and then we’ll look to see how that plays within the five-year plan.
And I would expect more detail in and around the five-year plan Aaron later on this year. Right now, we’ve basically did it. I don’t want to say mechanical update, but basically we’ve removed the assets that have been sold out of that plan and haven’t really put any real work into the reallocation of that capital if it even happens. I mean, we’re pretty happy with how to-date. So just because the — we had that in there doesn’t mean we’ll end up doing that or spending that. Got you?
Aaron Bilkoski: Thanks very much, Craig. I appreciate that.
Craig Bryksa: Yes.
Operator: Thank you. Your next question comes from Jeremy McCrea with BMO Capital Markets. Please go ahead.
Jeremy McCrea: Hi, guys. You talked about well improvements, well cost savings. How much of this have you built into 2024 and 2025? Like I know you said there’s some of it built in, but what could we potentially see for revisions if these wells continue to come above expectations or the well costs continue to come below expectations? I’ll leave it at that for now.
Ryan Gritzfeldt: Hey Jeremy, it’s Ryan here. Yes, I mean, as you go, you build a little bit in rates, but again, what I’ve been saying is these things take time. So we said our Montney drills depending where you are $9 million to $10 million per well, and we have line of sight to sub $9 million over the next 12 months to 24 months. So it takes time. We want to see it repeatably before we build more in. Like Craig mentioned, we brought in a different walking double rig into the play. It’s taken a few pads to finally find its stride. It’s drilled as quick as well at just under 11 days. But these things take time, right? So we’ve built a little bit in, but as we go, obviously, we’ll build in more kind of similar to the production results question. We need to see the results being repeated consistently and we’ll build it in over time.
Craig Bryksa: The one thing I would add too, Jeremy, so as you’re well aware, one of the things or one of the things that really drives your cost structure is time and location, and Ryan alluded to that. So as we get our rigs running and we get smarter and we’re doing things better and the team is really learning off each other, then ideally you drive that time and location down. That’s both on the drilling and the completion side as we follow along the three rigs in the Montney in particular with one frac spread. But the other thing that works in our favor is our internal procurement division, and we’ve had some success recently here with working with a new service provider to pump our fracs, and that ended up saving us a material amount of money here on a per well basis too.
