| Wapiti, NuVista's largest core area is located south of Grande Prairie, Alberta, approximately 520 kilometres northwest of Calgary. This core area will play an important role in our future growth.
When Rider Resources acquired Wapiti from a senior oil and gas company in May of 2007, the property was producing 2,800 Boe/d, primarily consisting of non-operated shallow decline Cadomin gas.
One and one-half years later at the end of 2008, Wapiti was producing 4,700 Boe/d, with this increase in production resulting from the drilling of higher working interest operated wells in the eastern portion of the property. Currently, production in this core area is approximately 5,500 Boe/d.
Over the past year NuVista has invested a significant amount of capital resulting in an increase in undeveloped land from 45,000 net acres to 125,000 net acres. In addition to an annually renewable inventory of approximately 20 high working interest, multi zone drilling prospects, NuVista has significant interests in three high gas-in-place resource prospects, with significant development potential.
The Cadomin, the most mature of these plays is not operated by NuVista, but may ultimately lead to over 100 development infill locations at a working interest of approximately 40%. Both of the other high gas-in-place resource plays are operated by NuVista. NuVista's first four wells in the Dunvegan play were tied in during February 2009, adding 1,200 net Boe per day of production. If production tests on thicker sands in the lower Dunvegan are successful, this play may yield a combination of over 100 horizontal and vertical development wells over the next five years.
Although further into the future, NuVista has procured approximately 160 sections of contiguous Montney acreage with an average working interest of 90%.
May 2009 |
