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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 VIKING DEVELOPMENT
Viking Geology
In the Garrington area, the Viking consists of a thick shoaling upward (shoreface) sandstone sequence capped by a thin conglomeratic unit. Locally the conglomeratic facies is termed the Viking A Sand and the underlying shoreface package is termed the Viking B Sand. The A unit is separated from the main, thicker B sandstone by a thin shale interval. The Viking A Sand exhibits good reservoir properties (250 mD+) and has been the historical drilling target and completed interval. The underlying B Sand is much less permeable and similar to the Cardium A Sand, was considered a sub-economic target on a stand alone basis in vertical wells.
Viking Development Potential
The Company owns the Viking rights in 4,320 gross acres of land, with an average 58.5% working interest. There are four proposed Viking horizontals on Company lands (Sections 22, 26, and 28-34-03W5 and Section 04-35- 03W5) targeting the Viking B Sand. There is also potential in Sections 36-34-03W5 and 12-35-03W5 but due to the high GORs exhibited by the Viking wells on those lands the Company did not schedule locations.
A number of Viking wells have produced from a large mapped pool area both on and adjacent to Company lands. In general, the majority of wells have both the Viking A and B Sands present, with the B variably completed. The majority of production is assumed to have been obtained from the conglomeratic A Sand. A total of 85 wells completed in the Viking within the mapped pool area have produced total recoveries of 5.8 MMbbls of oil and 27.7 bcf of gas to date. Twenty-five wells are still producing. Volumetric estimates for the pool, based on net pay mapping, are 49.6 MMbbls for the A Sand and 66.6 MMbbls for the B sand. Assuming the majority of produced oil has been from the A Sand, the B Sand has significant potential utilizing horizontal wells and stage fracturing.
