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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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SOUTHERN ALBERTA #1 - PEKISKO (PRINCESS)
UPPER MANNVILLE CHANNEL
The Cretaceous Upper Mannville Channels in this region occur at the top of the Mannville Group and were deposited within a fluvial–deltaic environment. Reservoir units consist of very fine to coarse-grained sands, enclosed within thinly bedded, interbedded sandstones, siltstones, shales, and coal. Net pay thicknesses average 6m, and porosities average 18%.
In 2005, the Company drilled the vertical 02/13-23-018-14W4 well targeting the Mannville Channel, but due to using a gelled hydrocarbon frac method, production was not as expected,with a current rate of 16 Mcf/d. The Company has identified two horizontal locations targeting gas in the Upper Mannville Channel, a poly CO frac may yield better results. This reservoir has similar potential to the offsetting 11-18-018-13W4 well.
PEKISKO GEOLOGY
The Mississippian Pekisko was deposited as a widespread shoaling-upward carbonate succession, where locally it is 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. Along the subcrop edge (Princess, Med River), leaching and dolomitization have created pockets of increased reservoir quality, where hydrocarbons have been trapped and subsequently exploited (typically with vertical wells). Porosities average 10%,with net pays averaging 6m.
PEKISKO DEVELOPMENT POTENTIAL
Recent horizontal technology has been applied to the development of these reservoirs with increasing success and economics. Crew Energy has been the most active industry player through crown land sales in the Bantry area, where Pekisko lands have been sold for up to $5,450/ha, and horizontal drilling, with ~ 60 horizontal wells drilled and licensed since 2007. Currently five horizontal infill locations have been identified in the Pekisko L Pool. Additional potential exists on Section 35-018-14W4, southeast of the Pekisko V Pool, offsetting current activity.
