Chinook Energy Inc. reported unaudited production results for the fourth quarter and year ended December 31, 2014. Average production for the fourth quarter of 2014 was 8,572 boe/d.

The company's average daily production for fiscal year 2014 was 7,937 boe/d. The company exited 2014 at approximately 8,000 boe/d, net of volumes associated with the Gilby disposition which closed on December 16, 2014. During 2014, Chinook drilled five (4.5 net) horizontal wells on the Albright/Beaverlodge property. The wells cumulatively averaged IP30 of 840 boe/d (or 186 boe/d per well). The company maintains a drilling inventory of more than 50 (30 net) Dunvegan locations in the Grande Prairie area. During 2014, Chinook drilled three (2.25 net) horizontal wells in the Birley/Umbach area of northeastern British Columbia, targeting liquids-rich natural gas in the Montney. The first well, a-60-k/94-H-3 (0.75 net), was drilled and completed in the first quarter and commenced production in April 2014 at restricted rates of 3.9 mmcf/d and 135 bbls of free condensate per day (785 boe/d). The well has been on production for 205 days during which it has averaged 3.5 mmcf/d and 68 bbls of free condensate per day (653 boe/d). The second horizontal well, b-71-F (0.75 net), was drilled and completed in the third quarter and has been on production for 68 days at restricted rates during which it has averaged 4.4 mmcf/d and 48 bbls of free condensate per day (782 boe/d). The third horizontal well at b-72-F (0.75 net) was drilled in December 2014 as the first of Chinook's four well drilling program for the first quarter of 2015 and currently awaits completion. Current throughput capacity at Chinook's Birley compressor site is approximately 9 mmcf/d. During 2014, in the Karr/Gold Creek area, Chinook drilled two (1.13 net) horizontal wells targeting oil and associated natural gas in the Montney and one (0.37 net) water disposal well. The Montney wells, 100/16- 30-067-03W6 (0.38 net) and 100/14-12-069-06W6 (0.75 net), tested average production rates of 1,480 boe/d (42% oil) and 543 boe/d (42% oil), over seven days and nine days, respectively with final test rates of 1,500 boe/d (30% oil) and 870 boe/d (40% oil) respectively. The 16- 30 well commenced production in November and has been on production for 82 days during which it has averaged 281 bbls/d of oil and 3.6 mmcf/d of natural gas (881 boe/d). Chinook drilled a water disposal well (0.37 net) offsetting the 16- 30 well to reduce high operating costs associated with the trucking of water associated with production from the mid-Montney in this area. The water cut in the 16- 30 well has been stable at 80% since being brought on production and Chinook anticipates receiving its water disposal permit sometime in the first quarter of 2015.

During the first quarter of 2015, Chinook will complete the installation of a 1.6 kilometre, 12 inch gathering line and the acquisition of long lead equipment and fabrication components to complete a facility expansion to 35 mmcf/d. The company will complete one (0.75 net) well in the first quarter and one (1.0 net) well in the summer 2015 in anticipation of lower third party service costs.