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 |
|||
REDWATER DEVELOPMENT POTENTIAL
|
Development Potential:
The current area of horizontal Viking oil development at Redwater extends from 055-19W4 to 058-23W4 with over 110 horizontal Viking wells having been licensed or drilled. Spacing for Viking horizontal wells in this region varies between eight and 16 wells per section.
One of the Company’s best wells, 01-03-056-20W4, went on production July 3rd, 2010 with initial production in excess of 100 bbl/d and is currently producing oil at a rate of 60 bbl/d. The production from this well as one of the initial ten Company wells that were drilled in 2010, supports the Company’s upside model shown on this page. Normalized industry and Company production exceed the type curves created by the third-party engineering firm. On Company lands 45 additional horizontal locations have been identified, 32 of these locations have been assigned reserves.
There are 12 Proved Undeveloped locations, four assigned reserves of 60 Mboe per well and eight assigned 50 Mboe per well. 11 Probable locations assigned 50 Mboe per well and nine Possible locations, five assigned 63 Mboe per well and four assigned 75 Mboe per well. There is also potential upside to infill drill as spacing for these 45 horizontal wells does not exceed 12 wells per section.
|
|
Geology:
Viking Formation: The Lower Cretaceous Viking Formation is encased in shales, overlying the Joli Fou and underlying unnamed shales of the Lower Colorado. The Viking Formation was deposited as part of a marine transgression and forms a wedge of clastic sediments that grade into shales towards the centre of the basin in the east.
In the Redwater area the Viking reservoir is a continuous sand body over the length of the Viking fairway, as shown on the regional map (page 4). In the area around Twp.055, Rge.20W4, where the Company is active, the reservoir thickness is up to five meters thick. Reservoir sands coarsen downwards and are interbedded with abundant thin, centimeter scale shale laminae. Grain size varies from fine to very fine grained at the top of the Viking oil unit to medium and coarse grained towards the bottom of the unit. In some areas pebble size grains are present. Porosity averages 18-20% and based upon core analysis and core examination the entire interval is oil filled. Drilling depths in the Redwater area are around 650-700m.
The cross section at the bottom of the page illustrates the Viking reservoir from Westlock in the northwest to Redwater in the southeast. The basal Viking unit is continuous and shows a remarkable similarity over the 90km length of the fairway.
