According to a Ziff Energy Group study and report, Western Canada Oil Production Outlook, light oil drilling will remain strong until after 2015, when the increasing maturity of existing plays will result in a production slowdown. However, a new crop of tight oil plays could stabilize or grow production to the end of the decade, the report found.
The report also predicted that “the future of western Canadian oil is in thermal oil, oil sands mining and cold heavy oil production.” The study forecasts oil production to 2020 in five regional strategies – northern oil (Alberta, British Columbia); central Alberta oil; heavy oil (Alberta/Saskatchewan border); Saskatchewan/Manitoba oil and Alberta/Saskatchewan oil.
In addition to the five oil strategies, Ziff analyzed oil from four tight oil plays: the Cardium, Bakken, Viking and Montney. The analysis indicated that the amount of light oil produced in western Canada in 2020 will be about the same as in 2000. “The key issue” according to Ziff, “is the declining average productivity of wells."
1 Yoho Resources Inc. – 7/15/14
Yoho Resources Inc. completed one well and is participating in the drilling and completion of another in the Kaybob area on its Duvernay Prospect in Alberta. The #16-04, in which it holds 50% interest, was drilled to 4,740 meters, with an approximate 1,300-meter horizontal lateral in Duvernay Shale. The venture was fracture stimulated, bridge plugs were drilled out with a coiled tubing unit and a flowtest was conducted. During initial clean-up, the well flowed at rates up to 4.6 MMcf of gas per day (approximately 1,200 bbl of oil equivalent including condensate and NGLs). It was also flowing completion fluid at rates of 60 to 120 bbl per hour. At the end of the 117-hour total flow period, the well was producing up-tubing at a restricted rate of 2.5 MMcf of gas per day with a flowing tubing pressure of 8,500 kPa and a casing pressure of 19,800 kPa. In addition to gas production at the end of the flow period, the well was producing field 230 bbl per day of condensate. Additional NGLs are anticipated to be recovered at the gas processing facility. Total liquids yield from this well, including both stabilized condensate and plant liquids, is estimated to be 120-130 bbl per MMcf of raw gas. At the end of the flow period, approximately 23,900 bbl of completion load fluid had been recovered. The second well, #16-02, (33.33% interest and operated by a third party, was drilled to 4,710 meters with a 1,300 meter horizontal lateral within Duvernay. The well was drilled, cased, fracture stimulated, the bridge plugs were drilled out with a coiled tubing unit and production tubing was snubbed-in. During initial clean-up, the well flowed up to 3.6 MMcf of gas per day (approximately 900 bbl of oil equivalent, including condensate NGLs). The well was also producing field condensate at rates of up to 300 bbl per day. Additional NGLs are anticipated to be recovered at the gas processing facility. Yoho’s headquarters are in Calgary.
2 Contact Exploration Inc. 5/22/2014
A horizontal Montney discovery in northern Alberta flowed 621 bbl of condensate and 2.7 MMcf of gas per day. According to Calgary-based Contact Exploration Inc., #02/14-30 is producing from the D-4 zone of Montney. The East Kakwa prospect was drilled to 4,563 meters, with a horizontal leg of 1,068 meters. During the final 24 hours of flowback, the well continued to clean up fracturing fluid and had a system pressure of approximately 1,800 kPa. Contact Exploration is the operator of the Kakwa-Montney well with 25% interest in partnership with Questerre, holding 25% interest in this well before payout. The remaining interest is held by local investors.
3 Advantage Oil & Gas Ltd. 1/23/2014
Calgary-based Advantage Oil & Gas Ltd. announced results from three horizontal completions on the company’s Phase VI Glacier Development program in western Alberta. The #100/5-20-76-12w6 flowed 18.4 MMcf of gas from Upper Montney. The flowing pressure was 1,252 psi after 14-stage, high-rate, slickwater fracturing with an openhole packer system. A Lower Montney well, #100/15-31-75-13w6, flowed 11.9 MMcf of gas per day. A second Lower Montney well, #100/10-31-75-13w6, flowed 11.8 MMcf of gas per day. Additional completion information for the two Lower Montney wells is not available.
4 Donnycreek Energy Inc. 9/27/2013
An Upper Montney discovery in the Deep Basin in Alberta had a gross 24-hour flowrate of 444 bbl of condensate and 3.71 MMcf of gas per day. According to Calgary-based Donnycreek Energy Inc., #14-2 Kakwa is within the Kakwa/Resthaven trend. Tested on an unreported choke size, the flowing pressure was between 800 kPa and 6,800 kPa. The prospect averaged gross production rates of 327 bbl condensate and 2.8 MMcf per day of gas during the final 98 hours of testing. Additional completion information is not available.
5 Manitok Energy Inc. 5/2/2013
Manitok Energy Inc. announced results from Stolberg Cardium oil completions in Alberta at the southern end of the Stolberg trend in Canada's Foothills Belt. According to the Calgary-based company, #10 was initially swabbed at about 200 bbl per day of light oil for 78 hours. Manitok shut-in #10 and drilled #11 from the same pad. Since early February, #10 has been free-flowing oil to the surface and producing approximately 400 bbl per day of 45-degree-gravity API oil, with little or no associated gas. The #11 was swabbed at about 180 bbl per day of light oil in mid-February and it has free-flowed oil since that time. In April, #11 averaged approximately 500 bbl per day of 45-degree-gravity API oil, with little or no associated gas. Neither well intersected formation water. The #12 is in the northern extent of the Stolberg trend, offsetting the 1996 discovery well. After an unstimulated openhole completion, the well was swabbed back at highly variable rates of up to 450 bbl per day of 42-degree-gravity oil with 100% oil cut and little associated gas. Manitok is currently evaluating the technical data to determine the next steps in putting the well on production. The well is one of the deeper wells in the Stolberg structural complex and it has now extended the oil-water contact significantly downward, suggesting an oil column at least 600 meters.
6 Contact Exploration Inc. - 6/22/12
Contact Exploration Inc. completed a Montney horizontal well in the Kakwa-Resthaven area of west-central Alberta, Canada. The #13-17 flowed 1,150 bbl of condensate and 8.3 MMcf gas during a 24-hour production test. Tested on an unreported choke size, the flowing casing pressure was 1,100 psi. The venture was completed with 15-stage water-based foam fracture stimulation in the 1,430-meter horizontal section. According to Nickle’s Petroleum Explorer, analysis of the production data indicates that an additional 25-30 bbl per MMcf of natural gas liquids could be recoverable through a refrigeration process and could increase to 70 bbl per MMcf if deep-cut processing is available. Production tubing is currently being installed to improve recovery of the remaining fracturing fluid. Contact is the operator of the Kakwa-Resthaven Montney well with 37.5% interest in partnership with Questerre Energy, holding another 37.5% interest in this well before payout and a 25% interest in this well after payout. It also holds a 25% working interest in 16 contiguous sections (10,240 acres) of land offsetting this well. The partners are also identifying and surveying follow-up drilling locations.
Here’s some recent action in Midcontinent oil and gas plays including Western Anadarko and Fayetteville producers, extended-lateral Arkoma Woodford wells and a Wolfcamp discovery in the Permian Basin.
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