We hold rights in approximately 135,000 gross acres of land with an approximate working interest of 86% that are prospective for the Triassic Montney zone resource play (attractive land tenure and minimal third party encumbrances). This formation is typified by high rate condensate-rich natural gas. In 2014, we completed the construction of a 100% owned compressor and dehydration station in the Bilbo area. The facility and downstream third party infrastructure has a gross throughput capacity of up to 80 MMcf/d. A second compressor station was constructed in the Elmworth area and has 40 MMcf/d of initial throughput capacity and plans are underway to expand the facility to 65 MMcf/d in 2016. This compressor station became operational in June 2015. Production from the Wapiti Montney zone is currently processed at one of three large area processing plants: the SemCams K3 plant, the Keyera Simonette plant or the CNRL Gold Creek plant.
We currently have over 60 Montney wells on production in the Wapiti Area. In 2015, Wapiti Montney production averaged approximately 16,735 Boe/d (over 32% natural gas liquids). 2016 activity will focus on continuing to add low-cost, liquids-rich Montney production and maintaining production volumes at Bilbo, building volumes to increase throughput for the new Elmworth compressor, and a modest amount of delineation drilling.
The Montney formation in the greater Wapiti area is a thick (200m+) section of hydrocarbon-charted fine grained reservoir found at depths ranging from 2,500 – 3,500m. The Montney has been exploited in Western Canada utilizing horizontal wells for nearly a decade with successful developments stretching from Kaybob, AB, to Cameron, BC. Originally, horizontal developments focused on mostly dry gas regions of the Montney. However, more recently, operators have concentrated their efforts on testing and developing the liquids-rich portion of the immense Montney fairway. Within the wet gas retrograde condensate Montney fairway from Elmworth to Karr exhibits liquid yields that range from 25 to >200 Bbls/MMcf, permeability that ranges from nanodarcy to microdarcy, and original gas in place per section as high as 150 Bcf. Encouragingly, exceptional initial do day production rates of greater than 2,000 boe/d are being achieved across the map sheet.