At Snipe Lake, the 3-28 well will be on stream by March 1, 2005 with an expected deliverability of 2 mmcf/d (330 boe/d) and a minimum of 25% working interest.
At Pincher Creek a well license has been approved and the Corporation continues to pursue appropriate business partners to participate in this well. This is planned as a 600 meter horizontal well in close proximity to a well which has produced 11 Bcf of raw gas.
In the Viking area the Corporation drilled three wells on a farm-in basis as previously announced. All wells were cased and are now being tied in to pipelines and should be on stream by March 1, 2005. The expected net production is 300 mcf/d (50 boe/d). In addition, the Corporation drilled a coal bed methane well which was cored for reserve estimating purposes. The results of the core testing indicated a resource base of 1.4 Bcf per section of gas in place. This is supported by existing production from wells that have been on stream for over ten months. An infill program covering two sections with up to four wells per section is being planned for this area and expected to be drilled by July 2005. The rights to ten sections of land have been acquired in this area.
In the Bow Island area the Corporation has been producing gas at 160 mcf/day (26 boe/d) from a new pool. Seismic is being acquired in the area to determine the infill drilling potential of this discovery and to determine how much up dip a well can be drilled to increase productivity. The current well has an up-hole gas zone which will be re-completed.
In the exploration areas there are 12 prospects in the queue. In the Snipe Lake area one well has been spudded with a 22% working interest. Two other exploratory wells have been tested with a 49% working interest. One well that tested at 750 mcf/d (125 boe/d) will be tied in by the end of March and the other well continues on test to determine the magnitude of the play type and the potential size of the reservoir.
In the Bow Island area the Corporation has received a well license to drill another exploratory well. This well will be drilled by March 31, 2005. Six sections of land have been optioned in this area for exploration.
At Goose River an exploration well was drilled last winter but left untested and currently a service rig is on site to test a potential hydrocarbon zone. Results will be available in late March.
At Ponoka the Corporation is participating in a Leduc test on the basis of interpretation from 3 D seismic. This well will be drilled to contract depth by March 31 with a final working interest of 20%.
At Wallace a well license has been received and the well is expected to spud by the first week of March, weather permitting. The Corporation will be taking a minimum of 45% interest in the well.
As a follow up to the recently concluded Participation Agreements with Vecta Energy Corp., the seismic has been acquired and processed with the interpretation to be completed by mid-March prior to committing to a well. As previously announced the Corporation shot two seismic programs and has the option to drill up to five wells on an option basis in 13 sections of land in central Alberta. The option wells are on 11 sections in the Chambers area, with Choice having an option to take 25% of the well, and near Olds covering two sections where Choice will have the option to take 33% of the well. Choice will earn an average of 51% of the original participating interest after payout of the wells.
Management is very pleased with the performance of the exploration program. The prospects in inventory at this point in time are at a modest depth of less than 2,000 meters in general with a significant working interest making the impact material to the Corporation. On the exploitation side of the business, with the current wells being put on stream, it is expected that production will be approximately 1,400 boe/d. Additional results from exploration and at Pincher Creek will add to the growth prospects during 2005.
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