Non-core Asset Disposition
The non-core assets produced a total of approximately 6,700 boe/d (81% gas and 19% oil and NGL) during the first half of 2012 and had 34.2 mmboe of proved plus probable reserves as at
December 31, 2011
. A description of the key areas is as follows:
West Central Alberta
Willesden Green (Open Lake), Alberta
The Willesden Green property is located approximately 35 kilometres north of the
Town of Rocky Mountain House
. There are two principal areas in this property, being the Jurassic Rock Creek gas play on the east side of the property and the Cretaceous Ostracode/Glauconite oil on the north side of the property. 3D seismic is used to explore for this porosity and a number of future targets have been identified. The Ostracode is developed in a linear sand bar and produces 39
API oil. This pool is being evaluated for potential water injection pressure maintenance. Additional drilling targeting both the Second White Specks and Glauconite is being evaluated. Production from this property in the first half of 2012 averaged 696 boe/d.
December 31, 2011
Sproule Report assigns 3.4 bcf of gross proved natural gas reserves and 505 Mbbls of gross proved crude oil and NGL reserves to the Willesden Green property. In addition, 1.6 bcf of gross probable natural gas reserves and 225 Mbbls of gross probable crude oil and NGL reserves have been assigned to this property.
The Brazeau-Ferrier area is located between 50 and 80 kilometres west of the town of
. The property produces sour light oil and natural gas from Devonian aged
pinnacle reefs. The majority of the production is from a non-operated 50% working interest in the
C, D and E pools. Additional gas production occurs from several non-operated
, Basal Quartz and Notikewin pools.
In the southern part of this area Advantage has acquired 6.75 sections (100% net) for Cretaceous Belly River and Notikewin Formation natural gas. 3D seismic has been acquired and locations are being evaluated as vertical drill targets in the Belly River. The acreage is being reviewed for the potential to drill a horizontal multi-stage frac well in the Notikewin Formation. Production from this property in the first half of 2012 averaged 572 boe/d.