| Our Provost core area is located west of the Saskatchewan border approximately 250 kilometres northeast of Calgary, Alberta. In 2003, pursuant to the plan of arrangement with Bonavista, we obtained one minor oil property in this area. We have increased our operations in this core area through exploration and development activities as well as by acquiring additional producing properties and undeveloped land.
Our 2008 average production rate in the Provost area was 4,549 Boe/d consisting of approximately 3,229 Bbls/d of oil and 7.9 MMcf/d of natural gas. Our 2008 exit production rate was approximately 4,116 Boe/d. This core area contains 101,100 acres of undeveloped land with an average working interest of 88%.
The northern portion of the Provost area has multi-zone potential and contains both medium-heavy oil and natural gas targets. In 2008, our focus was the delineation of a pool extension at our Auburndale property based on 3D seismic and infill drilling at Chauvin.
The southern portion of this area contains ten prospective natural gas horizons at drill depths of less than 1,100 metres.
In 2008, we pursued both oil and natural gas exploration and development opportunities in this core area with good success. We drilled or re-entered 18 (16.3 net) wells and achieved an average success rate of 83%, resulting in 12 oil wells,
3 natural gas wells and 3 dry holes.
On January 8, 2008, we acquired oil properties located in the Provost core area, in close proximity to our Chauvin property. At the time of the acquisition, production averaged approximately 650 Bbls/d of 23° API oil. During 2008, we optimized production from these properties, increasing production to over 800 Bbl/d.
May 2009 |
