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Merit Energy Company

Merit Energy Company
2011 Oil And Gas Properties Offering

 

Bids Due:

May 26, 2011

adobe PDF IM
57 Pgs, 18.8 MB

adobeConfidentiality
Agreement

Contact:
Tom Caldwell

403-299-8453

 

Rich Wickens

403-299-8449

Introduction Letter | Foreword & Disclaimer | Executive Overview

(Download Executive Overview PDF)

 

CENTRAL ALBERTA: Overview | Leduc-Woodbend Overview | Leduc D-3 | Leduc (D-3) Attic Oil Drilling | Leduc (D-3) Re-entry and Electrical Submersible Pump Installations | Nisku (D-2) Overview | Nisku (D-2) Re-entry/Conversions/Stiumulations | Nisku (D-2) Drilling | Leduc-Woodbend - Blairmore H Pool | Leduc-Woodbend Blairmore ZZZ Pool Development | Leduc-Woodbend - Blairmore A Pool | Leduc-Woodbend Wabamun Development | Norris and Redwater Overview | Norris Upper Mannville H Pool Development Potential | Redwater Ellerslie Development Potential | Highvale/Carvel Overview | Pembina Overview | Pembina Belly River Infill Drilling Opportunity (Download Central Alberta PDF)

 

WEST CENTRAL ALBERTA: Overview | Brazeau River | Pembina/Nisku | Kaybob | Windfall (Download West Central Alberta PDF)


NORTHWEST ALBERTA: Overview | Cranberry | Firebird | Chinchaga | Other Properties (Download Northwest Alberta PDF)

 

KAYBOB SOUTH BEAVERHILL LAKE GAS UNIT NO. 3

 

 

  • 38.4751% working interest in the Kaybob South Beaverhill Lake Gas Unit No. 3
  • Potential for well reactivations
  • Well optimizations
 

 

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PRODUCTION

 

The Kaybob South Beaverhill Lake Gas ‘A’ Pool was discovered in 1961 and was not fully onstream until 1968. In January 2011 eight Unit wells were producing at a gross rate of 5,974 MMcf/d with natural gas liquids production of ~2 bbl/d.

 

RESERVES

 

Proved Developed reserves totaling 3,739 MMcf of gas and 293 Mbbl of natural gas liquids were assigned to seven producing and two non-producing wells in the Unit. All of the reserves are assigned to the producing Swan Hills interval. Corresponding Probable Developed Producing reserves of 628 MMcf and 49 Mbbl NGLs were assigned. Additional Probable Developed Non-Producing reserves of 341 MMcf and 27 Mbbl NGLs were assigned to two Swan Hills wells.

 

FACILITIES

 

Gas from the Kaybob South Beaverhill Lake Gas Unit is processed at two different gas plants. The wells south of the Athabasca River produce to Semcams Kaybob South #3 Gas Plant at 03-15-059-18W5 which has a design capacity of 444 MMcf/d and a December 2010 throughput of 307 MMcf/d. The wells north of the Athabasca River produce to Semcams Kaybob Amalgamated Gas Plant at 01-12-062-20W5 which has a design capacity of 390 MMcf/d and a December 2010 throughput of 193 MMcf/d.

 

MARKETING

 

Gas is shipped to the Semcams Kaybob #3 plant where the gas is processed and sales can be shipped via Nova or Alliance. Natural gas liquids enter the Pembina Pipeline system. Sulphur is shipped by CN rail cars. Gas and liquids are sold to BP Canada Energy Resources.

 

SEISMIC

 

The Company does not own any proprietary seismic data over the Kaybob South Beaverhill Lake Gas Unit No.3.

 

DEVELOPMENT POTENTIAL/GEOLOGY

 

BEAVERHILL LAKE (SWAN HILLS)

 

Swan Hills age reef deposits are part of the Beaverhill Lake Group and in the Kaybob area occur along a northwest-southeast oriented carbonate bank edge. The majority of the reefal reservoirs are dolomitized, but some of the reservoirs consist of limestones. The Kaybob South Beaverhill Lake ‘A’ Pool was the first discovery along the trend and has an OGIP of over 3.6 Tcf. To date the Pool has produced over 2.8Tcf.

 

The Swan Hills reef reservoirs in the Kaybob South area are found at depths of ~3,300 m with reef thicknesses upwards of 100 m and pay intervals typically ranging from 15-30 m. The last group of wells drilled targeting the Swan Hills were drilled into the upper several meters of the reef and open hole completion techniques such as acid squeezing applied. One example of this is the 04-03-060-18W5 (directionally drilled from 13-34-059-18W5). The well was brought on production in late 1996, to date has produced 15.1 Bcf, and was producing at over 1 MMcf/d in January 2011.

 

The largest Swan Hills producer in the Kaybob South Beaverhill Lake ‘A’ Gas Unit is the 08-34-059-18W5 well which was rig released in 1971. This well produced 255 Bcf until it was suspended in late 1999. There is a porous interval ~20 m above the original completion that has been identified as remaining reserve potential.

 

Opportunity exists in several wells for reactivation or other wellbore optimization processes such as descaling and acid washing to improve production.

 

3-D seismic may be utilized to identify structurally high undrained areas of the reef for future drilling opportunities.

 

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