Coelacanth Energy Inc. received all regulatory approvals to construct infrastructure for its Two Rivers East Project and finalized a processing agreement with NorthRiver Midstream Inc. (NRM). The project includes a new battery facility for gas compression/dehydration, oil treating, and water handling, along with gathering and transport lines. The total infrastructure cost is estimated at $80 million, with $50 million allocated for the facility. Funding will come from Coelacanth's cash reserves and NRM funding.

Manufacturing of facility components has begun, and in-field construction is scheduled from fall 2024 to April 2025. Initial production from the 5-19 Pad is estimated at 4,500 boe/d, with significant potential in the Lower, Upper, and Basal Montney formations. The three Lower Montney wells have achieved an average rate of 1,338 boe/d per well, including 729 bbls/d of 39 API light sweet oil and 3.7 mmcf/d of liquids-rich gas.

Coelacanth also secured a 10-year agreement with NRM for up to 60 mmcf/d of firm processing service at NRM's McMahon gas processing facility, commencing post-construction. NRM will fund the extension of its gathering system to connect the Two Rivers East Facility to its current system, ensuring long-term takeaway of over 60 mmcf/d of gas into the Westcoast system.