| Our West Central Saskatchewan core area is located east of the Alberta border approximately 400 kilometres northeast of Calgary. The region was established as a core area in June 2006 when we acquired natural gas properties in west central and northwestern Saskatchewan. This core area has multi-zone production from both natural gas and heavy oil horizons.
In 2008, our daily average production was approximately 1,355 Boe/d (5.1 MMcf/d of natural gas and 491 Bbls/d of oil). The 2008 exit production rate was approximately 1,412 Boe/d. We operate nearly all production in this core area. Our operations in the area include six natural gas processing facilities and a number of field compressors connected through an extensive network of gathering lines. This core area contains 56,000 acres of undeveloped land with an average working interest of 78%.
In 2008, we drilled or re-entered 17 (11.9 net) wells yielding 10 oil wells and seven dry holes. The 2008 drilling program focused on development and extension drilling at Reflex Lake, Yonkers and the first phase of a horizontal infill drilling program at Hallum. The four Hallum horizontal wells were producing at rate of approximately 360 Bbls/d (gross) at year end with additional infill phases planned. NuVista has over 15 additional horizontal locations identified in Hallum, each of which is forecasted to produce in excess of 100,000 Bbls of oil, pay a 2% royalty and produce oil at low operating costs.
May 2009 |
