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Progress Energy
Winter 2010/2011 |
Bids Due: Jan. 17, 2011 |
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Primary Contact: 403-299-8453
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Introduction Letter | Foreward & Disclaimer | Asset Sale Overview Fort St. John North: Overview | Beaverdam | Currant | Minor Properties Fort St. John South: Overview | Two Rivers | Stoddart | West Eagle | Flatrock | Teal Ojay: Overview | Area Activity | Nikanassin Development Potential | Cadotte/Falher Development Potential Copton: Overview | Geology & Area Activity | Cardium Development Potential | Cadotte Development Potential Two Creek: Overview | Jurassic 'A' and 'B' Pools | Jurassic 'A' Pool - ASP Upside Potential | Gething |
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FORT ST. JOHN SOUTH - STODDART
FORT ST. JOHN SOUTH - STODDART HIGHLIGHTS
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LAND
The Company has 37,961 gross acres of land that includes 6,543 acres under royalty. Average working interest of 62%.
PRODUCTION
The property is currently producing 874 boe/d of gas-weighted production primarily from the Belloy Formation.
RESERVES
Stoddart is the largest property in the FSJ South package in terms of reserves. Total Proved reserves are 2,025 Mboe which represents 64% of the FSJ South Package’s Total Proved reserves. These reserves are mainly Developed Producing with only 165 Mboe classified as Proved Non-Producing. Total Proved plus Probable reserves are 2,876 Mboe, of which 752 Mboe is oil/NGL and 12,748 MMcf is natural gas. Probable reserves were assigned to account for expected higher recoveries and two reactivation candidates.
FACILITIES
The Stoddart field consists of several single well oil batteries, and pipeline connected gas wells. All oil is trucked to two main batteries at 10-31-085-19W6 (57.125% WI) and 08-35-085-20W6 (100% WI). Gas wells are pipeline connected to a 100% owned compressor station at 12-16-085-18W6. The opportunity exists to drop the pipeline pressure from 300 psi to 50 psi with additional compression (400 hp) at the 12-16 Compressor. Performance curves suggest combined incremental production of ~1.0 MMcf/d from the field with this reduction in pressure.
MARKETING
The Company holds a Spectra McMahon Plant Gathering (RGT) and Processing (Treatment) service contract which includes a land dedication. Firm processing service will also be assigned to match the RGT. The company currently holds firm Spectra T-North Short Haul and T-North Long Haul service that can be assigned.
Oil is trucked to various delivery points, and is purchased by Shell on a 30-day evergreen contract.
Natural gas liquids are recovered at McMahon 05-31-082-17W6 (McMahon Plant outlet) where spec products are purchased by Keyera on a one-year contract with an evergreen clause.
FORT ST. JOHN SOUTH - MUSKRAT / OAK HIGHLIGHTS
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DEVELOPMENT POTENTIAL
Belloy Formation: The Belloy in the Stoddart area consists of mixed dolostone with siliciclastic sediments deposited on a shallow marine shelf. The Belloy is overlain by the tight shales and siltstones of the Triassic. The majority of the Company’s lands in the Stoddart area fall within the northwest-southeast Belloy gas trend. The gas trend is updip of the Belloy oil trend (observed at West Eagle) and pinches out updip by a structural edge which is believed to be related to the horst and graben complexes of the area. The Company splits the Belloy in this area into a lower and upper unit which the ERCB classifiesas the Kiskatinaw Formation and Belloy Formation respectively.
Five Belloy gas locations have been identified in the Stoddart area. One is the 06-17-085-18W6 horizontal which is in the engineering report as a Probable Undeveloped location. Three of the remaining Belloy gas locations are horizontal wells with surface locations at 03-16-085-18W6, 01-20-085-18W6, and 01-25-085-19W6. The fifth location is a vertical well at 07-22-086-20W6 to test a 3-D seismic anomaly.
Offsetting the three horizontal gas locations in sections 16, 17, and 20 are the 12-16-085-18W6 and 11-18-085-18W6 wells. The 12-16 has produced 2.7 Bcf to date and was flowing at a rate of 1.2 MMcf/d (Aug. 2010). The 11-18 well has been on production since 1978, has produced close to 6.1 Bcf, and was flowing at a rate of 199 Mcf/d (Aug. 2010). In addition to these vertical Belloy producers, the 02/09-17-085-18W6 horizontal well was drilled in 2007. The original plan was to drill a ~400-500m lateral, but due to drilling problems only ~100m lateral was drilled. This lateral was completed successfully and to date the well has produced over 1.7 Bcf and is producing at a rate of 1.3 MMcf/d (Aug. 2010).
Offsetting the horizontal location at 01-25-085-19W6, the 04-25 vertical well has cumulated 991 MMcf to date and has been producing at a very shallow decline over almost five years of production. The current gas rate from the Belloy in the 04-25 well is 499 Mcf/d (Aug. 2010).
