TAMM O&G have reviewed and approved the Manning heavy oil work program proposed by their farm-in partner.
On March 15, 2011 Cougar Oil and Gas Canada Inc. ("COUGF") entered into a multi-phase farm-in agreement with TAMM to define and develop TAMM's 47 section Manning area heavy oil prospect. The first phase of the farm-in consists of COUGF performing a $2.5 million work program to earn a 30% working interest in the heavy oil prospect. One of the requirements of the farm-in was for COUGF to present for TAMM's review and approval a development plan for the first $2.5 million work program. TAMM management and Board of Directors has reviewed the work program and provided COUGF with the approval to continue.
This work program will be done at no cost and no risk to TAMM and will dramatically increase the value of the Manning heavy oil project. The work program proposed by COUGF will focus on defining the Elkton and Debolt heavy oil prospects and will consist of the following operations;
- Multi-well coring program: The target formations, Elkton and Debolt, have been mapped in the Manning area as a result of the numerous deeper conventional wells drilling through the heavy oil prospects but there are very few cores to review in the Manning area. With some areas of the TAMM lands having over 30m of potential oil pay, the core data will provide the foundation of the future development research. The coring program will consist of three to five core holes being drilled to gather Elkton and Debolt samples. The cores will be collected using a preserved technique with the goal of maintaining the original fluid content, fluid distribution, rock wettability and mechanical integrity. The core locations will include the thickest parts of the Elton and Debolt reservoirs in addition to locations which are in close proximity to the eroded edge of the formations which may have improved production qualities. The core date will be used to identify the sweet spots of the Manning heavy oil prospect.
- Oil sample analysis/Reservoir study: The long term production potential of the TAMM Manning prospect will be largely dependent on analysis of the Elkton and Debolt oil samples and the completion of additional in-depth reservoir analysis. The viscosity and specific gravity of the oil samples are important indicators to evaluate the oil quality. That information along with the porosity, permeability and reservoir pressure will be used to simulate various primary and secondary production techniques including the utilization of steam and solvents. Small samples of the core will be used to evaluate the movability of the oil contained in the carbonate rock using heat, chemicals and pressure.
- Seismic purchase and review: Approximately 85 to 100Km of trade 2D seismic data will be purchased overlying the TAMM Manning prospect. The seismic will be used to confirm structure and to identify the erosional edge of the Elkton and Debolt formations. The seismic will also be used to identify any Bluesky sandstone channels which run through the property which would become a conventional heavy oil project.
- Submitting proposal to upgrade prospect from Prospective Resource to Contingent Resource: Using the information collected from the $2.5million work program TAMM will be able to apply to upgrade the quality of the Manning heavy oil prospect to a Contingent Resource. Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.