Stonehorse strengthens Alberta growth pipeline with Drumheller output above 500 BOEPD

Drumheller production clears 500 BOEPD

Stonehorse Energy Limited (ASX:SHE) has pushed production from its Drumheller development in Alberta above 500 barrels of oil equivalent per day, with more than 55% of the output oil weighted. The increase comes as the company continues to bring a new tranche of development wells online.

Wells #5 and #6 were completed and safely brought into production in August, adding a combined 262 BOEPD to Stonehorse Canada Corporation’s business. The new output is 65% oil weighted, a mix the company says improves the Canadian operation’s netbacks and profitability.

Four wells now connected to facilities

Wells #7 and #8 have also been completed, tied into facilities and brought online. They remain in the clean-up phase, however, meaning their stabilised production rate has not yet been reported. Stonehorse expects a stabilised flow rate by mid-September, making those wells the next operational test for the development.

“These wells not only add production but increase the oil weighting and netbacks, improving the profitability of our Canadian business,” Executive Chairman Rob Gardner said. The statement points to a potentially stronger production mix, but the announcement provides no revenue, cost or cash-flow guidance against which to measure that improvement.

Further drilling planned before year-end

Stonehorse says current market conditions and drilling results to date support participation in additional development wells before the end of 2026. Its partner has identified more than 75 potential well locations in the Drumheller region for drilling in 2027 and beyond, although the scale and timing of that inventory remain subject to market conditions and execution.

The immediate marker is therefore not the headline inventory but the performance of wells #7 and #8 once their rates settle. The next meaningful update should show whether the latest expansion can sustain the area’s oil weighting and translate higher volumes into the improved netbacks Stonehorse has flagged.