Stonehorse Energy Hits 500 BOEPD at Drumheller With Four New Oil Wells Online
Key Takeaways
- Stonehorse Energy's Drumheller project has surpassed 500 BOEPD total production after bringing four new development wells online through its Canadian subsidiary SCC.
- Wells #5 and #6 are stabilised at a combined 262 BOEPD and 65% oil weighted, directly improving netbacks and profitability across the Canadian portfolio.
- Wells #7 and #8 are online but still in the clean-up phase, with stabilised flow rates expected by mid-September — meaning the 500 BOEPD figure does not yet reflect their full contribution.
- The broader Drumheller portfolio sits at greater than 55% oil weighted, a production mix that generates stronger per-barrel margins than a gas-heavy equivalent.
- Stonehorse's partner has identified over 75 potential well locations in the Drumheller region, with additional drilling planned before end of 2026 and a programme extending into 2027 and beyond.
Drumheller development gains momentum as four new wells come online
Stonehorse Energy (ASX: SHE) has brought four new development wells online at its Drumheller project in Alberta, Canada, through its subsidiary Stonehorse Canada Corporation (SCC). Wells #5 and #6 were successfully completed and brought online in August, with wells #7 and #8 subsequently tied into facilities and also now online, currently in the clean-up phase with stabilised flow rates expected by mid-September.
The milestone result means total SCC production in the Drumheller area has now surpassed 500 BOEPD (barrels of oil equivalent per day), with the portfolio more than 55% oil weighted.
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Production performance: wells #5 and #6 deliver 262 BOEPD
The combined net SCC production rate for wells #5 and #6 stands at 262 BOEPD, with body text in the announcement describing this as 65% oil weighted. The announcement header also notes 66% liquids for this well pair; both figures are disclosed in the source document and have not been independently reconciled here.
Wells #7 and #8 are online but still in the clean-up phase. No stabilised production figure has been disclosed for these wells, with flow rates expected to stabilise by mid-September.
The oil weighting across the broader Drumheller portfolio (greater than 55%) is a notable characteristic of the production mix, improving netbacks and overall profitability for SCC’s Canadian operations.
Executive Chairman Rob Gardner
“We are excited to see more positive results from our new joint wells in the Drumheller area. These wells not only add production but increase the oil weighting and netbacks, improving the profitability of our Canadian business.”
| Wells | Status | Combined Net Production | Oil Weighting |
|---|---|---|---|
| Wells #5 and #6 | Online — stabilised | 262 BOEPD | 65% oil weighted (66% liquids per announcement header) |
| Wells #7 and #8 | Online — cleaning up | Not yet disclosed | Not yet disclosed |
| Total Drumheller (SCC) | Portfolio | >500 BOEPD | >55% oil weighted |
What BOEPD means and why oil weighting matters to investors
BOEPD stands for barrels of oil equivalent per day. It is a standardised unit that captures both oil and gas production in a single comparable measure, converting gas volumes into their energy-equivalent in barrels of oil. This allows investors to assess total output across a mixed production base without needing to track oil and gas volumes separately.
Oil weighting matters because oil typically commands higher netbacks than natural gas. A netback is the revenue a producer receives per barrel after deducting transportation, royalties, and processing costs. Put simply, the more oil a company produces relative to gas, the stronger its per-barrel margins tend to be.
For Stonehorse, wells #5 and #6 have added oil-weighted production to SCC’s Drumheller portfolio. As Executive Chairman Rob Gardner noted, this improving oil weighting is directly lifting the profitability of the Canadian business. With the total portfolio now sitting at greater than 55% oil weighted, the production mix is positioned to generate stronger operating returns compared to a gas-heavy equivalent.
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Pipeline of 75+ well locations sets up long-term growth runway
The Drumheller program is not a single-quarter event. Based on current market conditions and drilling successes to date, Stonehorse is planning to participate in additional development wells before the end of 2026.
Looking further ahead, Stonehorse’s partner has identified over 75 potential new well locations in the Drumheller region and is preparing for additional drilling into 2027 and beyond. The near-to-medium term outlook, as disclosed in the announcement, includes:
- Additional development wells planned before end of 2026
- Partner preparing an additional drilling programme for 2027 and beyond
- Over 75 identified well locations in the Drumheller region
The pace of execution is worth noting. Wells #5 through #8 were all completed and brought online within a single quarter, demonstrating a repeatable development cadence rather than isolated results. Combined with the scale of the identified well inventory, the Drumheller program presents as a structured, multi-year development pipeline. The company has not disclosed specific production targets or financial outcomes tied to the forward drilling programme, and investors should treat the identified well locations as a planning inventory subject to ongoing assessment.
The Drumheller Phase 2 programme, which encompassed the planning and launch of this four-well sequence, was structured to deliver repeatable development results from the Ellerslie reservoir across successive quarters.
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