Progress Energy Resources Corp.   Winter 2010/2011 Asset Sale	Bids Due: Jan. 17, 2011	PDF IM 45 Pgs, 21.8 MB   Confidentiality Agreement	Primary Contact: Tom Caldwell 403-299-8453
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

 

OJAY - NIKANASSIN DEVELOPMENT POTENTIAL

 

 

NIKANASSIN GEOLOGY

 

The Upper Jurassic and basal Cretaceous Nikanassin Group (referred to as the Minnes Group in BC) comprise a thick easterly-thinning clastic wedge through northeastern BC, and subcropping in northwestern Alberta. Stacked marine and continental sandstones interbedded with siltstones, shales, and minor coals form overall thicknesses over 1,000m. The Lower Nikanassin (Monteith Formation) was deposited within a storm-influenced, river-dominated, deltaic environment, which is overlain by the shaley, coastal-plain deposits of the Middle Nikanassin (Beattie Peaks Formation), and capped by the fluvial sediments of the Upper Nikanassin (Monach Formation). Sediments consist of fine to medium-grained channelized and valley-fill poorly-sorted sandstones with pervasive cementation. Porosities tend to average 6%, with permeabilities of less than 0.1 mD.

 

Structural influences related to folding and faulting have enhanced the permeability and porosity of the Nikanassin gas reservoirs at Ojay. High quality 3-D seismic is required to identify Nikanassin drilling targets along the structural trends. Existing producers can be found parallel to the leading edges of the thrust fault belt where thrust-associated deformation has fractured the reservoir, significantly enhancing the permeability.

 

 

NIKANASSIN DEVELOPMENT POTENTIAL

 

Currently there is competitor activity southeast of the Ojay lands, where directional wells are being drilled with well trajectory parallel to bedding planes within fold limbs. Completions range from 3 to 5 zones, with initial production rates at over 10 MMcf/d. Well depths range from 3,500 to 3,800m, with drilling times averaging 30 days. On Company lands, seven locations based on 3-D seismic have been identified targeting 400m of gross pay in the Nikanassin. The Company most recently drilled the b-038-C well, and scheduled the completion and fraccing of five zones within the vertical well. Unfortunately mechanical problems caused only two of the fracs to be deployed before splitting the casing. Three additional were fracs performed using a small frac-string, but due to the downhole restriction, the frac-string remained downhole and production performance was not optimal. There is potential to recover the frac-string and test the well, or redrill this target.

 

 

Click to Enlarge