Petromin owns interest in five oil and gas properties in central Alberta situated along the Western Canada Sedimentary Basin – the most productive hydrocarbon area in Canada. In 2003, the Western Sedimentary Basin accounted for about 87 per cent of Canada's crude oil and 97 per cent of natural gas production. In total the Company's combined net production rate is at 250 barrels of oil per day.
|
Geology:
The Frog Lake area is within the heavy oil deposits of the lower cretaceous age in the McLaren channel sand along the Western Canada Sedimentary Basin. The McLaren channel trend extends over 50 miles from SE to NW forming a narrow trend of excellent heavy oil reservoirs containing over 1.0 billion barrels of original oil in place (OOIP). This distribution system passes over a pre-Cretaceous sub crop that contains significant reserves of Mississippian Bakken oil that is thought to have a common oil source. McLaren point-bar sandstones are re-incised and aggraded into reservoirs with up to 30 metres of pay and permeability of over 5 Darcies. Seismic definition of these pools is excellent due to high contrast of overlying shale with reservoir sandstones. Gas caps add an increased contract where present.
Production:
The Company has recently completed its third oil well at its Frog Lake heavy oil project, increasing gross production to approximately 300 barrels of oil per day. The Company retains various working interests in these wells ranging from 45 – 60 percent. Despite the drilling spacing unit, there will be one more location that will be drilled in the future.
Exploration:
A fourth drilling location is planned and will be drilled in 2007.
|
 |
Western Canada Sedimentary Basin (WCSB) |
|
Geology:
The Calmar Prospect is located along the Western Canada Sedimentary Basin in Central Alberta
Production:
The Company entered into a farm-out agreement in which the Company retains a 20 percent of wellhead revenues on the earning well plus a 15 percent royalty on 80 percent of wellhead revenue until payout, converting to a 52 percent working interest after payout.
Exploration:
The Company is currently evaluating the upper zone for dual completion potentials.
|
|
|
|
Geology:
The Gilby Property is located in Sonoka Alberta along the Western Canada Sedimentary Basin.
Production:
The Company’s Gilby property in Alberta, which produces natural gas from the multi-zone gas discovery in the 11-35-39-28 W4M well, reached payout and the Company converted its overriding royalty to a 16 2/3 percent working interest after payout The well has been producing at approximately 500,000 cu ft of gas per day.
Exploration:
The well at Gilby also contains potential Colony and Glauconitic gas zones which are being assessed for dual completion.
|
|
Petromin's Gliby property in Alberta producing natural gas |
|
Geology:
The Morningside Property is located along the Western Canada Sedimentary Basin in Central Alberta.
Production:
A second well located in the Morningside area of Alberta was drilled and completed at no cost to the Company. The 13-23-42-28 W4M well is a dual zone gas discovery producing at approximately 300,000 cu.ft per day and the second 6-23-42-28 W4M well is now on stream and also producing at approximately 300,000 cu.ft of gas per day. The Company retains a gross overriding royalty (GORR) convertible to a 10 percent working interest after payout on the first well and a non-convertible GORR on the second well.
Exploration:
The company also retains an interest in lands directly offsetting an oil well currently producing in excess of 100 barrels of oil per day. Additional drilling is being considered to evaluate potential in the Colony, Lower Glauconitic, and Basal Manville Sands.
|
|
|
Alberta - Canada
