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WINDFALL D-3 UNIT
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The Company operates the Windfall D3 Unit with a 72.917% working interest. In addition they own various non-Unit rights within the Unit boundaries and on 11 sections outside the Unit. |
PRODUCTION
In January 2011 production was 392 bbl/d, 927 Mcf/d of natural gas and 104 bbl/d of natural gas liquids, net to the Company. There are 10 Unit wells producing a mixture of liquids rich natural gas and light crude oil plus free condensate; eight of these wells are producing with gas lift systems. Natural gas liquids recoveries range from 30 to 95 bbl/MMcf of raw gas.
The Unit was under a gas cycling scheme for the majority of its early years with over 900 Bcf of gas having been injected. To date the Unit has cumulative production of 20.4 MMbbl of oil/free liquids and almost 1.5 Tcf of natural gas. Gas production has essentially been flat at around 4.0 MMcf/d for the last three years while oil production has been increasing and is around 520 bbl/d.
RESERVES
Proved Developed Producing reserves include 550 Mbbl of oil, 2.4 Bcf of natural gas, 202 Mbbl of natural gas liquids and 17 Mlt of Sulphur. The majority of these were assigned to four Unit oil wells and two Unit wells designated as gas wells. Corresponding Probable Producing reserves total 187 Mbbl of oil, 821 MMcf, 72 Mbbl of NGLs and 6 Mlt of Sulphur. Three locations within the Unit were assigned Proved Undeveloped reserves totaling 128 Mbbl of oil and liquids and 251 MMcf of solution gas. Incremental Probable reserves of 22 Mbbl and 45 MMcf were also assigned to these wells.
FACILITIES
All wells are equipped with a line heater and three phase separators and 10 are equipped with gas lift systems. The gas and liquids are recombined and sent to the central facility at 02-17-060-15W5 for transfer to the Semcams Kaybob #3 Gas Plant for processing and sales. Water is collected and sent to the injection plant at 06-18-060-15W5 for disposal in one of four active injection wells.
MARKETING
Gas, oil and condensate are shipped to the Semcams Whitecourt Plant where the oil and condensate are separated out and transported to Edmonton via the Pembina Pipeline. Gas is relayed to the Semcams Kaybob #3 Gas Plant where it 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
There is a 134 km² of trade 3-D seismic survey covering the Unit.
DEVELOPMENT POTENTIAL/GEOLOGY
LEDUC (D-3A)
Unit production is from the Leduc (D-3A) reservoir, a dolomitized carbonate reef, at a depth of 2,580 m. The hydrocarbon column consists of a thick sour gas section prone to retrograde condensation with an 8 m oil column connected to a large active aquifer. The original gas and oil ‘in-place’ estimates by the ERCB are significant at 914 Bcf of gas and 84 MMbbl of oil and will present additional opportunities for increased recoveries. Cumulative production to date is complicated by condensate on the oil side and gas injection on the gas side but has been estimated at 300 Bcf (33%), and 20 MMbbl (24%) for oil.
A 3-D seismic survey has identified structurally high undrained areas of the reef and four horizontal locations remain to be drilled from that analysis. The horizontal wells will target attic oil will produce with limited draw down versus vertical producer.
Although the back reef is believed to be bitumen filled there has been some oil and gas production from this area from the 10-29-049-15W5 well. The 10-29 well was drilled in 1960 and produced 30 Mbbl and 145 MMcf prior to being converted to a water injection well in 1962. The back reef area may represent an excellent opportunity for horizontal multi stage fracture stimulation technology.