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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 NON-UNIT
The Companies own various working and R4 R3 R2W5 royalty interests in 11,840 gross acres of non- Unit lands which are a mix of Crown and Freehold interests. The Companies average working interest is ~ 70%; approximately half the Companies combined acreage is at 100%. Working interests and acreage totals vary by stratigraphic interval.
Production
There are four producing horizons, occurring at depths between 1,600 and 2,400 meters, including the Cardium, Viking, Glauconitic and Ellerslie Formations. The Cardium contributes the majority of light oil production (along with solution gas and NGLs) and the majority of gas (with some oil) is from the Glauconitic Formation. From February to August 2011, Company sales production averaged 660 boe/d including 197 bbl/d of light oil, 71 bbl/d of NGLs and 2,356 Mcf/d of gas from approximately 54 wells.
Reserves
Proved Producing reserves totaling 334 Mbbls of oil, 137.1 Mbbls of NGLs, 5,390 MMcf of solution gas and 117 MMcf of non-associated gas were assigned to 44 oil wells and two gas wells. Probable Producing reserves totaling 396.1 Mboe were also assigned to the well group assuming better ultimate recovery. Proven Undeveloped reserves were assigned to fifteen horizontal drilling locations in the Cardium Formation. Based on analogue type curves the locations were assigned a total of 906.8 Mbbls of oil and 2,417 MMcf of gas with 60.1 Mbbls of associated NGLs. Probable Undeveloped reserves were also assigned to the development group assuming better well performance and ultimate recovery, adding 575.4 Mboe. One standing Cardium oil well was assigned Proved Developed Non-Producing reserves totaling 23.7 Mboe.
Facilities
The majority of Company non-Unit oil wells are pipeline connected, via a 100% owned gathering system, to a Company owned and operated central battery facility located at 11-17-034- 03W5. After treatment, sales oil is shipped directly to the Plains Midstream Canada ULC pipeline. Solution gas and non-associated gas is flowed to the Apache operated, Amoco East Garrington Gas Plant which is located on the same site as the Company's battery. Company wells in the northern block of lands (Sections 19 and 30-035-03W5 and 25-35-04W5) produce to single well batteries and produced fluid is trucked to the 11-17 battery.
Marketing
The 40° API sales oil and gas are sold under short term, 30 day contracts.
Development Potential
The Company lands have development potential in a number of proven horizons including the Cardium, Viking, Glauconitic and Ellerslie. Development capital is focused on the Cardium; a total of 22 horizontal drilling locations have been identified, 15 of which were assigned reserves in a recent report. Horizontal locations were also identified in the Viking (4) and Ellerslie (1) Formations.
