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Our Northwest Saskatchewan core area is located 100 kilometres east of Cold Lake near the Alberta-Saskatchewan border. The region was established as a core area in August 2005, when we acquired natural gas properties in northwest Saskatchewan for approximately $150 million. In June 2006, we acquired additional properties contiguous to our existing operations thereby increasing our dominance in the area. This area is natural gas prone and characterized by larger, more mature pools with lower decline rates. Parts of this core area are restricted to winter access and therefore we typically conduct an active
first quarter drilling program. In the southern part of this core area, we are currently evaluating several heavy oil prospects where access tends to be available year round.
Our 2008 average production rate was approximately 3,200 Boe/d (18.1 MMcf/d of natural gas and 181 Bbls/d of oil) and our 2008 exit production rate was approximately 3,226 Boe/d. We operate nearly all the production in this area and our facilities process over 95% of our production. Our operations in the area include seven main processing facilities connected through an extensive network of large diameter gathering lines.
This area contains a minimum of four prospective natural gas horizons at drill depths of less than 800 metres and is prospective for heavy oil in the southern portion. The Onion Lake oil pool was the focus of our development drilling program in 2008.
We have 125,000 acres of undeveloped land with an average working interest of 63%. We have acquired over 4,500 kilometres of 2D seismic, most of which is proprietary.
In 2008, we drilled 15 (11.6 net) wells and achieved an average success rate of 100%, resulting in 4 natural gas wells, and 11 oil wells.
May 2009 |
