The horizontal well, which is estimated to take a total of 21 to 25 days to drill, is targeting light oil from the Keg River formation, according to the company.

The surface casing and the first intermediate casing string had been landed and cemented, effectively isolating and sealing off the severe lost circulation zones that were identified during the well planning.

Currently, the drilling rig and auxiliary equipment is being used to drill the ‘build’ section, which will result in the wellbore being directionally steered to reach 90 degrees or horizontal as it enters the Keg River formation.

The company said that once horizontal, an 800m production leg will be drilled to produce the Keg River oil and the completion operations will begin as soon as the drilling operations are completed.