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Echoex Ltd. |
Bids Due: May 12, 2011 |
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Contact: 403-299-8453
403-299-8456 |
Introduction Letter | Foreword & Disclaimer | Corporate Overview Redwater:
Overview |
Development Potential |
Westlock Overview |
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CPR DEVELOPMENT POTENTIAL
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Geology:
The Middle Cretaceous Colorado Group provides the main producing zones in the CPR area. The Colorado Group is dominantly shale with numerous sand and conglomerate units interspersed; the sand units within the Colorado Group serve as hydrocarbon reservoirs. Productive fairways for the Base Fish Scales Sand, St. Walburg, and Viking are present over Company land in the CPR area.
Base Fish Scales Formation: The Base of
Fish Scales zone is a basin-wide marker representing a major period of
non-deposition. It contains abundant fish remains found within fine
sandstone, siltstone and shale. The reservoir sand in the CPR region is
thin, less than two meters, locally developed, and a NW-SE productive
trend is seen across some Company land.
Viking Formation: The Viking Formation was deposited in a marine setting in the CPR area. Thin shelf sandstones are stratigraphically trapped within tight shales. A trend of productive Viking runs across Company lands from the northwest to the southeast. Within this trend there are areas of poor or no production, these areas have been mapped out and avoided when identifying future locations. In the CPR area, sand ranges from five to ten meters, porosities range up to 21% with low permeability. |
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Development Potential:
The St. Walburg and Viking fairways overlap on much of the Company land and as a result all wells that have been assigned reserves assume commingling of these formations. 33 locations have been assigned reserves, of these 17 are PUD, ten are PRB, and six are POS locations.
The Company also piloted two sections, Section 10 and 32 of 045-02W4, at 80 acre spacing in 2010. The results from the pilot sections show that increasing downspacing from 160 acres to 80 acres adds incremental reserves to the production profile. Given the results from the Company’s downspacing pilots, there is potential for over 200 infill wells in the CPR area.
The rate and reserves of Viking wells can also be increased through the application of horizontal drilling. This is currently happening south of the CPR area, in Twp. 32, Rge. 1-3W4, where operators are horizontally targeting the Viking reservoir. The comparison of vertical and horizontal well production from the Viking in this area can be seen in the graph on this page. Through applying horizontal and multi-stage fracture technology the IP increased from ~90 Mcf/d on vertical wells to 500 Mcf/d on horizontal wells. Type curve’s on the current wells show ultimate recoverable reserves increasing from 110 MMcf to ~296 MMcf when you exploit the resource horizontally. Given the positive results operators have seen in the Viking to the south of CPR, this is another way, like downspacing, to capture the gas resource remaining.
