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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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NORTHERN ALBERTA - UTIKUMA
LAND
The Utikuma interests are located in Northern Alberta. In the greater Utikuma area, the Company owns a 43% working interest in 7,433 gross acres of Crown Land. Mineral rights are mixed, however, the majority of the lands include deep rights (i.e. Slave Point, Gilwood, Granite Wash).
PRODUCTION
The majority of the Company Share production in the Northern Alberta package is related to the operated Utikuma field. Utikima is producing 150 boe/d of light oil (June 2010) from ten wells producing from the Keg River Formation, and one well producing from the Gilwood Formation.
FACILITIES/INFRASTRUCTURE
The battery at 13-15-081-09W5 (61% WI) is the hub of sweet oil and rich solution gas production from 11 pipeline-connected wells. Additional capacity exists for owner and/or third party processing at this facility. Produced water is re-injected into the Keg River Formation for pressure maintenance to any of three existing injection wells. The remaining area operated and non-operated production is trucked to existing processing facilities.
MARKETING
Oil is treated, tanked, and shipped by pipeline to Bow River Pipeline (Plains) facilities on site, where it is bought by Nexen Marketing on a short term contract. NGL is bought by Vermillion as part of the plant processing agreement. Remaining solution gas is part of the Company Gas Pool which is delivered to Vermillion facilities, processed and delivered to TCPL.
RESERVES
The Utikuma working interest property has been assigned PDP reserves of 370 Mboe, and Total Proved Plus Probable Producing reserves of 485 Mboe.
DEVELOPMENT INVENTORY
There are eight upside locations identified within Utikuma: four vertical wells targeting the Keg River Formation, and four vertical wells targeting the Gilwood Formation.
Keg River Sandstone Formation: The sands of the Keg River were deposited as a prograding clastic wedge and shed during the uplift of the Peace River Arch. Pre-existing basement topography influenced the sediment deposition of this fluvial-dominated system, resulting in sand being deposited in lows and onlapping highs. Impermeable shales encase the Keg River sand reservoirs and provide upper and lower seals.
Four Keg River infill locations supported by existing production have been identified on the Company’s land.
Gilwood Formation: The Gilwood Formation unconformably overlies the Muskeg Formation and is sealed above by the Watt Mountain shales. At Utikuma, the Gilwood sands are sourced from the Peace River Arch to the northwest developing NE to SW trending barrier bar sands, in turn creating stratigraphic traps for the Gilwood reservoir sands.
Two Gilwood locations within the Gilwood ‘G’ Pool have been identified on the Company’s land. In addition, two step-out locations to test the presence of another barrier trend to extend the pool have been identified.
