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OMERS |
Bids Due: November 22, 2011 at 12:00 noon MST |
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Contact: 403-299-8453
403-299-8449 |
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Introduction Letter |
Foreword & Disclaimer | Garrington Asset Sale Overview |
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GARRINGTON ELLERSLIE DEVELOPMENT
Ellerslie Development Potential
The Company owns the Ellerslie Formation rights in 5,920 acres of land, with a 100% working interest. Opportunities include a Company identified horizontal well targeting the Ellerslie A sand and completion of Ellerslie A pay behind pipe in two wells.
The proposed horizontal drilling location in Section 18-034-03W5 can be directly correlated to the Ellerslie A interval being successfully exploited by Angle Energy ( “Angle”) to the south of Company lands. An example is the Angle Hz well 05-18-031-02W5 which was placed on production in December 2010, has cumulative production to date of 1.6 Bcf and has produced at 6.8 MMcf/d since the start date. The Angle wells report significant liquids production in the range of 300 and 800 bbls per MMcf. There are no well logs for the 05-18 horizontal well but the completed zone is exhibited on logs in the offset vertical well at 14-07- 031-02W5. 14-07 was placed on production in March 2009, has recovered 400 MMcf to date with a stabilized production rate (slightly inclining) of 465 Mcf/d.
The 14-07 well is placed on the on the cross section opposite demonstrating the Ellerslie A is correlative and present on Company lands, and highlighting the horizontal well potential in Section 18-034-03W5. Productivity of the Ellerslie A on Company lands has been established by the vertical well 12-19-034-03W5/2 which has produced 40 Mbbls of oil and 424 MMcf of gas.
Additional potential includes two behind pipe Ellerslie A completions in the 06-19-034-03W5 and 06-17-034-03W5 wells.
Ellerslie Geology
In the Garrington area the Ellersie consists of a series of stacked sandstones and interbedded silts and shales deposited unconformably on the Jurassic erosional surface. The sequence, which is about 75 meters thick, variably exhibits coarsening upward and fining upward cycles. A sandstone occurring in the middle of the depositional package, termed the Ellerslie A, is correlative across the broader Garrington area and has potential for horizontal drilling application.
