Fee Simple Title Land Offering
Greater Innisfail Area of Alberta
1.75 Sections (1,120 acres) of Land
Prospective in the Duvernay, Pekisko, Ellerslie, Viking and
Basal Belly River formations
Bid Deadline: March 1, 2023 at 4:00 PM EST
The estate of the Countess of Sutherland, Ms. Elizabeth Millicent Janson (nee Sutherland) (the “Estate”) has retained WCSB Divestitures, a division of Earth Horse Energy Advisors, to assist the Estate with the sale of its fee simple title land (the “Property”) located in the Innisfail area of Alberta (the “Fee Simple Title Offering”).
Fee Simple Title Land Offering
- The Estate holds all mines and minerals fee simple title in an aggregate of 1.75 sections (1,120 acres) of land in the general Innisfail area of central Alberta as outlined below.
NW 25 Township 35, Range 1 W5
NE 26 Township 35, Range 1 W5
SE 26 Township 35, Range 1 W5
N 35 Township 35, Range 1 W5
S 36 Township 35, Range 1 W5
- There are no producing wells on the Property, and it directly offsets the Leduc Innisfail D3 pool to the southwest.
- The Property has been evaluated by Gryphon Geo & Energy Advisors and it has been determined that there is potential in the Duvernay, Pekisko, Ellerslie, Viking and Basal Belly River formations. The Property is in the vicinity of other prospective formations including the Mannville Group, Edmonton and Paskapoo.
- There is open Crown land offsetting the Property which could prove beneficial to the development of the Property.
- The Property is on the southern portion of the East Duvernay Shale Formation which is largely being exploited by Vesta Energy Corp. and Artis Exploration Ltd.
Land Overview and Location
The Property includes all mines and minerals fee title in an aggregate of 1.75 sections (1,120 acres) of land in the general Innisfail area of central Alberta.
As outlined in the map and corresponding legend, there is open crown offsetting the Property which could provide beneficial to the development of the Property.
Area Production and Prospective Zones
There are several producing zones, with either oil-bearing or natural gas-bearing reservoirs in the vicinity of the Property. These producing zones include the Duvernay Formation and those that are stratigraphically above the Duvernay Formation which include from bottom up: Pekisko, Ellerslie, Viking, Belly River (Basal and other), Edmonton, and Paskapoo.
The main producers directly offsetting the Property include the Pekisko (purple) and Belly River (blue) as illustrated in the offsetting map. The Property is to the northeast of the Pekisko-Banff A Pool; a Pekisko analogue at 100/04-22-035-01W5 has produced 453 MMcf of natural gas and 2,000 barrels of oil and condensate to date. An analogue Basal Belly River well at 100/14-32-034-28W4/0 produced 40,000 barrels of oil and 2.3 MMcf of natural gas from 1987-2000.
There is Viking (bright green) production to the northeast, Edmonton (tan) production to the north and East Shale Duvernay production (dark green) to the north of the Property as illustrated in the map below.
The sole well on the Property at 100/07-36-035-01W5/00 was drilled in 1979 to TD 2,973m into the Leduc Formation. Three DSTs were conducted (DST#3 Wabamun, DST#2 Wabamun misrun, & DST#1 Ellerslie) , the Ellerslie recovered gas cut mud and the well never produced. It was abandoned and surface reclaimed in 1998.
There are several stratigraphic intervals flagged for potential upside in the 7-36 well, which include the Duvernay, Pekisko, Ellerslie, Viking and Belly River.
The table and the corresponding map below show wells offsetting the Property with and without Duvernay penetration. The 100/07-36 well (Labelled J) that is on the Property never produced. It penetrated the Duvernay Formation but was not tested as it was not the primary target of the original 1979 well.
Duvernay Formation Upside
The map below shows the Leduc Reef Complex (in blue) and the Duvernay Shale in grey.
The closest Duvernay production to the Property is to the north in Township 37. Two Duvernay horizontal wells, 100/02-09 and 102/02-09 (operated by Vesta Energy Ltd.) and which are analogous to the 03-21 well were brought on production in June 2018 and have cumulative production to date of 249.3 Mbbl of oil and 662.5 MMcf of natural gas on an aggregate basis. These wells offset the analogous well at 100/03-21-037-28W4/00.
There is potential to test and develop the Duvernay Shale on the Property. The 100/07-36 well that is on the Property penetrated the Duvernay Formation but was not tested as it was not the primary target of the original 1979 well.
Pekisko Formation Upside
The Pekisko in the 100/07-36 well on the Property has similar thickness and log characteristics as the analogue well at 100/04-22-035-01W5/00 which is in the Pekisko-Banff A Pool. The Pekisko may be a secondary target to test if drilling a deeper Duvernay test well. The Pekisko was not tested in the 7-36 well.
The 04-22 well has produced 453 MMcf of natural gas and 2,000 barrels of oil since March 2006.
Belly River Formation Upside
There are several Belly River producers and pools in the vicinity of the Property as illustrated in the map. The Tindastoll Basal Belly River G Pool is to the northwest and the Davey Basal Belly River C Pool is to the southeast of the Property.
An analogous well at 100/14-32-034-28W4/00 produced 40,000 barrels of 34.5° API oil and 2.3 MMcf of natural gas from March 1987 to August 2000. The oil had a 0.192% sulphur content.
Viking and Ellerslie Formations Upside
There are Viking (bright green wells) and Ellerslie (orange wells) wells surrounding the Property.
The 100/12-15-035-28W4/00 Viking well has produced 1.0 Bcf of natural gas and 1,100 barrels of oil since March 2003. The 100/07-36 well on the Property is along the regionally trending northwest-southeast shoreface sandstones of the Viking Formation.
There is a one-well Ellerslie pool to the southwest at 100/11-11-035-01W5/00; the well produced 35,000 barrels of oil and 136 MMcf of natural gas from March 1993 to October 1994.
Bid Deadline: March 1, 2023 at 4:00 PM EST
If you have any questions, please contact WCSB Divestitures at:
Ryan Ferguson Young
President
Ryan.FY@wcsbdivestitures.com
Direct: (403) 615-2975