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PEMBINA/NISKU
NISKU GAS
The Nisku Formation reservoirs in this area consist of dolomitized pinnacle reefs that are seismically resolvable. The majority of these Nisku reefs are gas bearing and are very productive. One example of a productive well is 11-09-048-12W5 which has produced over 88 Bcf to date. Current production is 2.6 MMcf/d (Jan. 2011). The Company has Nisku rights offsetting this location and other productive Nisku reservoirs. With additional 3-D seismic data, further Nisku locations may be identified.
BRAZEAU RIVER NISKU P POOL UNIT
The Company owns a 30.7428% working interest in the Brazeau River Nisku P Pool Unit which is producing approximately 13.6 MMcf/d of liquids rich natural gas. Since discovery in 1978 the Unit has progressed through several stages; from 1987 to 1999 over 211 Bcf of natural gas was cycled through the reservoir to improve condensate recovery. The Unit has been on blowdown since 1999 and has recovered over 483 Bcf of gas. The decline curve is starting to flatten and ultimate reserves are expected to be significant.
NISKU OIL
The Company owns working interests ranging from 3.9% to 46% in five Nisku Formation oil pools, summarized as follows:
Typically these pools have three to four wells, range from 220 acres to 350 acres in areal extent, and have net pay from 18 to 52 m. Oil gravity is over 40° API. Tertiary recovery schemes involving gas and solvent injection have been carried out in the Q, M, and O pools and recoveries have been has high as 85%. Future potential development projects include implementation of tertiary floods in the N and T pools, horizontal wells to capture attic oil, and completion of uphole pay and zonal isolations.
The effectiveness of horizontal wells to capture attic oil has been demonstrated by the 02/08-34-049-11W5 well drilled in the M pool in 1991. To date this well has recovered 3.8 MMbbl of oil despite being drilled 10 years after the immediately offsetting wells, which have recoveries of 4.2 and 7.7 MMbbl. Potentially there are similar horizontal locations in the O, N and T Pools.
Isolation of lower perfs to control water production has recently been effective in the 02/05-12-050-10W5 well in the T pool. A packer set in May 2010 in this well resulted in a production increase from 6 to 60 bbl/d and drop inwater production from 98% to 58%. The well has recovered 23 Mbbl since the packer was set.