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Fall 2010 Asset Sale |
Bids Due: Nov. 10, 2010 |
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Primary Contact: 403-299-8447 |
Introduction Letter | Foreward & Disclaimer | Asset Sale Overview Northern Alberta: Overview | Utikuma | Minor Properties North Eastern Alberta: Overview | Ashmont Central Alberta (Non-Unit): Overview | Swan Hills/Virginia Hills & Judy Creek | Ferrier/Willesden Green | Minor Properties Central Alberta (Unit): Overview | Virginia Hills Unit | Leduc Unit South Central Alberta: Overview | Michichi | Drumheller | Richdale Southern Alberta #1: Overview | Bantry | Pekisko (Princess) | Mannville Waterflood Southern Alberta #2: Overview | Alderson | Bow Island Royalty Group: Overview | Properties |
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CENTRAL ALBERTA (NON-UNIT) -
SWAN HILLS/VIRGINIA HILLS & JUDY CREEK
SWAN HILLS/VIRGINIA HILLS
This property currently produces 63 boe/d (Company Share June 2010). 76% of the production is weighted to light oil. Two light oil development locations have been identified.
LAND
The Swan Hills/Virginia Hills interests are located in Central Alberta. The Company owns a 42% working interest in 14,550 gross acres of land.
PRODUCTION
Three producing oil wells (Beaverhill Lake and Viking) and three producing gas wells (Gething, Viking, and Upper Mannville) contribute 63 boe/d of Company Share production.
FACILITIES/INFRASTRUCTURE
The Company’s oil wells are equipped with pumping units and produce to single well batteries and tanks.
MARKETING
Natural gas is sold into the Celtic Gas Pool and delivered to NOVA/TCPL.
Oil/condensate is sold to Nexen Marketing on a short term contract.
NGLs are sold to BP on an annual contract.
RESERVES
The property has been assigned Total Proved reserves of 113 Mboe, and Total Proved Plus Probable reserves of 159 Mboe.
DEVELOPMENT INVENTORY
Two development locations targeting oil in the Swan Hills/Slave Point Formation have been identified on Company Lands at Swan Hills/Virginia Hills. In Judy Creek, one horizontal Pekisko oil target has been identified.
GEOLOGY
Swan Hills/Slave Point: The Devonian Swan Hills Platform consists of aggradational, backstepping (to the west) low angle ramp cycles. The Swan Hills reefs initiated on the thickest portions of the Platform and built back out over the Platform during an initial strongly progradational phase. Subsequent aggradational reef cycles backstepped in response to sea level events. The platform consists entirely of limestone and the most productive areas are associated with coarser grained shoal margins and grainy lagoon facies. Overall sediments in this platform setting have low permeability. Current development by vertical wells is restricted by depth (costs) versus the relatively low inflow rate. Attempts at horizontal drilling in the early 1990’s yielded results that were not significantly better than vertical well performance.
Penn West, Pengrowth, Arcan, and Devon are successfully targeting the Swan Hills/Slave Point with horizontals within proximity of the offsetting units. The Company has one horizontal well producing from this zone, with opportunity for additional horizontal infill wells.
JUDY CREEK
Pekisko: The Mississippian Pekisko was deposited as a widespread shoaling-upward carbonate succession, locally characterized by a massive limestone deposit, consisting of interbedded grainstones, packstone and mudstones. Erosional processes have resulted in a NW to SE trending subcrop edge through Central Alberta. Locally the morphology of the subcrop is highly variable, punctuated with headlands, re-entrants and outliers, creating ideal closures for hydrocarbon accumulation. Based on offsetting core data, the reservoir in the Judy Creek area has retained its primary intergranular porosity with no dolomitization. Porosities average 8% and gross thicknesses average 24m.
Interest in the Pekisko in the Judy Creek area has included landsales of up to $1,200/ha from early 2010 to present. In 2009, Second Wave Petroleum began horizontal drilling program targeting Pekisko 23° API oil. Their program is located adjacent to Company acreage. To date, they have achived positive initial production rates. Based on wireline logs, the Pekisko on Company lands shows similarities to the Pekisko currently being developed by Second Wave .
Slave Point: Based on the current productivity of the 02/10-12-064-10W5 horizontal Slave Point well, additional potential for horizontal development has been identified.
