Canadian Imperial Venture Corp. has completed a rigorous technical review and has made conclusions on the prospectivity of the Garden Hill area. To arrive at these conclusions, the Company had to interpret and integrate new critical information provided by Side Track No. 2 (ST No. 2) and review, and in some cases, re-interpret earlier drilling, testing and seismic data. This extensive and diverse data set now forms a coherent cluster of information allowing the Company to have a high degree of confidence in the following technical conclusions:
- The upside resource potential of Garden Hill is very attractive and is in the range of 200 - 400 million barrels of oil (mmbo) recoverable.
- Individual well productivity in the range of 1,500 to 2,500 barrels of oil per day (bopd) is predicted for unfaulted areas of the reservoir.
- The majority of the reservoir is unfaulted and these areas have been identified.
- High recovery factors are predicted based on primary and secondary recovery schemes.
- Port au Port No. 1 is communicating with a large reservoir. Initial speculation in 1995 that the reservoir around the well was limited has now been disproved by the pressure and flow test history of the well.
- Geophysical evidence supports the interpretation that the area around Port au Port No. 1 is transected by a splay of small faults that impede permeability in the immediate area but do not act as complete barriers.
- High initial production rates in Port au Port No. 1 indicate that matrix permeability and reservoir thickness are sufficient to support well production in excess of 2,000 bopd in unfaulted areas of the reservoir.
- A re-examination of seismic data identifies such unfaulted areas and targets them for future drilling. One such target is approximately 300 m to the north of Port au Port No. 1 / ST No. 2 and is proposed for drilling as Port au Port No. 2.
- Volumetric estimates on the areas and reservoir parameters suggest a resource potential for Garden Hill South of 100 mmbo recoverable and 100 to 300 mmbo recoverable for Garden Hill North. These estimates are of the same magnitude as earlier ones but the supporting data are more extensive.
The Company's priority is to focus its efforts and resources on drilling Port au Port No. 2. The expectation for this well is production in the range of 1,500 to 2,500 bopd. In order to drill Port au Port No. 2, the Company is seeking the participation of its partners. Currently, the working interests in the subject lands are Canadian Imperial Venture Corp. 50%, Hunt Oil Company of Texas 25% and EnCana Corporation of Calgary, Alberta 25%. Production from Port au Port No. 2 is seen as the catalyst for continuous economic production from Garden Hill. Production from ST No. 2 will be tied in after Port au Port No. 2 is on stream.