Undeveloped Land Position Builds Up for ProEx
ProEx Energy continued to build its undeveloped land position through crown sales, strategic asset acquisitions and farm in activity. At December 31, 2007 the Company had access to approximately 465,000 acres of undeveloped lands and had identified approximately 300 locations on these lands that at the current pace of capital investment amount to over three years of forward inventory.
In January 2008 the Company acquired the remaining 50 percent working interest in 11,520 acres of undeveloped land at Caribou by swapping its 50 percent working interest in 5,120 acres of undeveloped land at Green. At the February 2008 British Columbia land sale the Company acquired 6,400 acres of Debolt mineral rights at Caribou/Buckinghorse further adding to the potential inventory of opportunities.
The Caribou/Bubbles acquisition in the second quarter of 2007 added approximately 2,000 boe per day of production and 80,000 net acres of undeveloped land but more importantly expanded our footprint northward in the British Columbia foothills. The Bubbles area is predominantly a development and optimization project while the Caribou block has provided the Company with numerous Halfway and Debolt opportunities.
The Caribou lands included one producing Debolt well, three non-producing Halfway wells and one non-producing Slave Point well. To date the Company has drilled six Halfway and three Debolt discovery wells on the Caribou block. Facility infrastructure will be developed during 2008 to tie-in some of the stranded Halfway wells in addition to the new discoveries.
Effective November 30, 2007 the Company acquired an area competitor's position at Blair and Cameron. This acquisition added approximately 250 boe per day of production and approximately 32,000 net acres of undeveloped land. This area is highly prospective for Cretaceous sweet gas accumulations and includes well developed infrastructure. We have identified a significant number of drilling locations after reprocessing existing 3D data and integrating this data into our knowledge of the morphology of the reservoirs throughout the region.