Stonehorse’s Alberta Well Produces 431 BOPD, Plans Three More in 2026
Stonehorse Energy’s first well in Alberta’s Ellerslie reservoir is producing ahead of schedule and below budget, prompting plans for three more wells in 2026 to deepen its foothold in Western Canada.
- First well in Drumheller Area completed, producing 431 BOPD gross
- Stonehorse holds 20% working interest in initial well
- Three additional wells planned for 2026 with 35% working interest each
- Investment of approximately $1.75 million per new well
- Potential for further development as oil prices recover
Strong Start in Alberta’s Ellerslie Reservoir
Stonehorse Energy Limited has announced a promising start to its operations in the Drumheller Area near Calgary, Alberta, with its first well targeting the prolific Ellerslie reservoir now completed and producing ahead of expectations. The well, which Stonehorse holds a 20% working interest in, is delivering 431 barrels of oil per day (BOPD) gross, exceeding pre-drill forecasts and doing so under budget. This early success underscores the reservoir’s reputation as a high-return play within the Western Canada Sedimentary Basin.
Strategic Expansion Plans for 2026
Building on this momentum, Stonehorse has secured agreements to participate in three additional wells slated for drilling in 2026. Each of these wells will see Stonehorse investing approximately $1.75 million to earn a 35% working interest, a significant step up from its initial stake. These four wells collectively position the company to capitalize on the Ellerslie reservoir’s potential, especially as oil prices show signs of recovery. The company’s Executive Chairman, Rob Gardner, emphasized the strategic importance of this light oil opportunity for expanding Stonehorse’s footprint in Western Canada.
Economic Context and Future Outlook
The Ellerslie reservoir is increasingly recognized as an economically competitive play, rivaling established formations like the Montney and Clearwater. Stonehorse’s ability to execute the first well below budget and ahead of schedule bodes well for the economics of the upcoming wells. However, the commencement of drilling for the subsequent wells remains contingent on oil price conditions, reflecting the inherent volatility in the energy sector. The company’s farm-in agreement not only secures immediate production but also grants rights to participate in further development, signaling a longer-term commitment to the region.
Investor Implications
For investors, Stonehorse’s update offers a tangible demonstration of operational capability and strategic positioning. The production rates exceeding type-curve expectations provide confidence in the asset’s quality, while the planned capital deployment highlights a clear growth trajectory. Yet, as with all exploration and production ventures, risks remain tied to commodity price fluctuations and execution of future drilling programs.
Bottom Line?
Stonehorse’s early success in Alberta sets the stage for growth, but future drilling hinges on oil price dynamics.
Questions in the middle?
- Will oil prices sustain levels to support drilling of the three additional wells in 2026?
- How will Stonehorse manage operational risks as it increases its working interest in new wells?
- What are the long-term production forecasts for the Ellerslie reservoir beyond these initial wells?
