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PEMBINA OVERVIEW
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The Company owns an average 70% working interest in 6,453 gross (4,513 net) acres in the Pembina area, ~65 km southwest of Edmonton, Alberta. The P&NG rights included are generally restricted to the Belly River Formation. The Company operates the Pembina Knobhill Belly River Unit No. 2 with a 91.8933 % working interest. Within the Unit there are 11 producing oil wells and nine water injection wells. Non-Unit lands include working interests ranging from 50 to 100% in 12 producing Belly River oil wells and a 13.83% royalty interest in one Edmonton Sand gas well. |
PRODUCTION
In total there are 23 producing Belly River oil wells with net production of 173 boe/d, reported for January 2011. This is made up of 168 bbl/d, 3 boe/d of natural gas liquids and 11 Mcf/d of natural gas.
RESERVES
Proved Developed Producing reserves totaling 370 Mbbl, were assigned to 23 Belly River oil wells based on decline curve analysis. Probable Producing reserves (lower decline) of 48 Mbbl were also assigned to these wells. Three locations were assigned Proved Undeveloped and Probable Undeveloped reserves totaling 94 and 38 Mbbl, respectively. Proved Non-Producing reserves of 4 Mbbl was assigned to the reactivation of the 12-10-046-01W5 well.
FACILITIES
Pembina Knobhill Belly River Unit No. 2 (PKBRU2) production is gathered at the 02-35-046-02W5 central battery (Company WI 91.8933%). The 36.8° API sales oil is delivered to Pembina Pipeline while the solution gas is transported via a Company owned pipeline to the operated 08-30-046-01W5 gas plant (Company WI 50%). Surrounding production is gathered at either the 08-34, 11-35- 046-02W5 or 04-02-047-02W5 satellites (Company WI 69.1666%) prior to shipment to the central battery. Water Injection facilities at the 02-35 battery use produced water and makeup water from the 04-25-046-02W5 source well for Unit injection and deliveries to the 06-20-046-01W5 satellite for injection in that area.
Production in Twp 046-01 is gathered at either the 06-20-046-01W5 satellite/injection station (Company WI 50%) or the 08-30-046-01W5 satellite Company WI 100%). Produced fluid is shipped to the 02-35-046-02W5 battery for processing and gas is processed at the 08-30-046-01W5 gas plant. Production from Sections 14, 15 and SE/4 22-047-02W5 produce to single well batteries. The 08-30-046-01W5 gas plant consists of a booster compressor, main reciprocating compressor, refrigeration skid and LPG storage bullet.
MARKETING
All products have short term contracts except Unit solution gas which is committed to a long term Pan-Alberta contract.
GEOLOGY
The Pembina Knobhill Belly River Unit No. 2 has been on production since July 1978 and was placed on waterflood in the fall of 1982. To date almost 3.9 MMbbl of light, 37° API oil has been recovered from the Unit. Production is obtained from three separate sands referred to as the A, B, and C sands, (top down). In aggregate they make up the Basal Belly River K2K Pool which occurs at a depth of ~1,000 m. The K2K Pool is ~9,400 acres in area with the Unit covering ~1,600 acres. In almost all cases the wells are completed with fracture stimulations in all three zones. The uppermost A sand is the thickest averaging from 8 to 10m; the B and the lowermost C sands average from 2 to 4m each.
Original oil-in-place of 120 MMbbl has been estimated for the entire K2K Pool with recovery under primary at 11% and an incremental 2.7% attributed to waterflood recovery.
Development drilling with in the Unit took place in three phases in 1978-79, 1986-87 and 1996-97. At its peak in 1998 there were 16 producing wells and 9 water injection wells. Spacing varies but averages about 53 acres per well. A review of the Unit determined there is upside potential in waterflood optimization as well as infill drilling.
The waterflood is a line drive pattern with three rows of injectors and four rows of producers oriented from southwest to northeast. Line drive waterfloods can be prone to low recoveries and by-passed oil as they are susceptible to preferential permeability streaks. Also, water injection wells in a line result in back to back injection wells which tends to 'trap' oil between them since there are no pressure sinks to draw the oil away. The inefficiency of the Knobhill line drive flood is compounded by the presence of the three sands; the less permeable A sand will receive the least pressure support, with water cycling occurring through the higher permeability B and C sands.
