As a result of the numerous active oil and gas companies such as Tusk Energy Corp., Canadian Natural Resources Limited, Duvernay Oil Corp, Devon Energy Corp and Hunt Oil Company who have been shooting seismic and drilling wells in the area of the Peace River Arch, the report suggest that Pemberton Energy Ltd property is in a proven multi-horizon play area, with hydrocarbon potential from basement to surface. The most potential deep zones are the Granite Wash and Beaverhill Lake formations. These Devonian and older porous sandstones have the potential for significant hydrocarbon reserves, and lie at a depth of 2000m to 3000m and can be draped over highs on the Precambrian basement. Since there are few deep wells in this area with which to tie, the play is truly a geophysical one with 2D and 3D seismic data needed to delineate the porosity, thickness and closure in these zones.
Galleon Energy announced recently a gas discovery in 13-11-72-26W5M to the southeast of the Pemberton Energy Ltd property and has proven this Granite Wash theory: 2 meters of porous clastic sand with a potential of 2.7 mmcfpd gas production. Galleon Energy Inc. has recently drilled another deep well to the Beaverhill Lake sand formation with 10m of pay (2500 bopd) at approximately 3000m in 16-32-71-26W5M. Hunt Oil has an adjacent well in 13-33-71-26W5M which is also producing from this same zone at the same rate. The gas sand has a potential of 1 to 2.7mmcfpd.
The Company has received proposals for drilling and the current cost estimates for each well cost between $1.8 to $2.5MM for deep 2000m to 3000m zones and $100K to $500K for shallower targets.
Also outlined in the report the main zones of hydrocarbon potential are the lower Cretaceous Notikewan, Falher and Gething formations. These sandstones are at approximately 600m to 1200m in depth. The Triassic sediments from approximately 1100m to 1400m depth (the Montney carbonates and sands, the Charlie Lake carbonates and the Halfway sand) all have hydrocarbon potential.
The Mississippian Debolt and Banff formations as well as the Devonian have yet to demonstrate significant reserves in the area. However, even with the relatively small seismic data base currently under review, large structural features through the Mississippian and Devonian are evident and could result in large structural closures.
The Granite Wash sands underlie these formations and drape over Precambrian basement highs. Depending on the time of deposition, the Granite Wash sand thickness and porosity can vary, giving them potential to be a very exciting hydrocarbon producer. To the northwest most of the deeper Devonian section, including the Beaverhill Lake, is missing above the Precambrian. Structural closures on the seismic are good anomalous leads, however, it is recommended that reservoir quality must also be assessed from well logs and 3D seismic to reduce the risk of these deep expensive wells that explorationists target.
Further to the west, the geological section is truncated even more with Triassic eventually directly overlaying the Precambrian.
The age of clastic deposition overlaying the Precambrian becomes progressively younger. These depositional edges should be mappable using techniques such as 3D seismic thus reducing the risk of missing these potential targets.
President, Richard Saxon, states, "With nearby recent discoveries, the oil patch is heating up in this area. We are very pleased with the results of the 2D seismic and after consulting with the Company's geological and geophysical teams, Pemberton Energy Ltd. is taking an aggressive approach to acquire professional scientific data by obtaining further 2D seismic, and shooting 3D seismic in order to minimize shareholder risk and maximize potential returns."
Pemberton Energy Ltd's principal business is the acquisition, exploration and development of petroleum properties. The company continues to focus on its primary corporate objective: the creation of value for shareholders by identifying oil and gas accumulations with relatively low geological risk but with substantial reserve potential.
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