Access to the RBC Rundle VIRTUAL DATA ROOM requires registration by execution of a project confidentiality agreement. To register please contact Jill Switzer: 403 299 8446
|
Echoex Ltd. |
Bids Due: May 12, 2011 |
|
Contact: 403-299-8453
403-299-8456 |
Introduction Letter | Foreword & Disclaimer | Corporate Overview Redwater:
Overview |
Development Potential |
Westlock Overview |
|||
PAKOWKI DEVELOPMENT POTENTIAL
|
Geology:
Development Potential:
A large amount of original gas-in-place remains untapped in the Pakowki area; this resource lies beneath a bird sanctuary which covers some of the Company’s land. Four development opportunities have been assigned Proved Undeveloped reserves of 115-145 MMcf per well and an additional 14 directional (slant) locations have also been identified to access this reservoir. On the rest of the Company’s lands 14 vertical and four directional (slant) locations have been proposed to infill between existing producing gas wells.
As seen on the historical production graph on this page the decline in the Pakowki property is ~5%, with no additional wells drilled since 2006. This shows that there is a large amount of gas reserves that are not being effectively exploited. The additional locations the Company has identified are one way to access this resource, another way would be to drill horizontally.
|
|
Determining if the Medicine Hat ‘B’ sand can be exploited with horizontal technology is already under way in the area. Spur Resources has licensed a horizontal well targeting the Medicine Hat directly offsetting Company lands at 16-06-005-08W4. Contingent on the results of the Spur horizontal location, the 36 upside locations could be changed to horizontals. This would increase the volume of reservoir exploited, which in turn could increase IP rates and enhance per well recovery for a minimum additional cost.
The Medicine Hat ‘A’ sand was perforated in six initial wells. Gas pressure upon perforation was observed but post frac the zone would not sustain a flow rate. This is a large resource that may be recoverable using horizontal multi-fractured wells.
