Emerson Oil & Gas Acquires Acadia Project in Canada
Emerson Oil and Gas has recently acquired the Acadia Project, a multi-objective oil and gas exploration play. Emerson considers the project as low risk with a high probability of success for productive oil and gas.
The Acadia Project consists of 15 sections of Crown P&NG rights in eastern Alberta. Wells in the area produce natural gas at rates of up to 3 Mmcf per day from the Viking formation. Cumulative production from this reservoir has been over 2 Bcf from lands that adjoin and are contiguous to the project leases.
Pressure analysis indicates that large reserves remain in the zone and mapping indicates that the reservoir extends under the project lands. DST shows (drill stem tests shows), geological formation mapping and seismic indicate oil potential in the Bakken zone and gas potential in the Colony and Second White Specks zones.
Geology and structures at the Acadia Project show high promise for productive oil and gas. The Bakken zone has oil shows in DST's in wells that offset the project lands. Seismic indicates the Bakken zone is a geological "high" under the project. In addition, seismic also indicates a Banff limestone "high" under the license that overlies the Bakken high. This zone does not currently produce in the area but produces oil in other areas. The Colony sand has tested gas on the land and adjacent to it. The Colony sand is above the Banff.
The Viking zone, located 280 feet above the Colony, contains natural gas in wells contiguous to both southwest and north sides of the Project. Mapping indicates that the reservoir continues under the Project land. Pressure analysis of producing gas wells shows that 16 Bcf of natural gas were originally in place in the Viking reservoir contiguous to the Project on the north side. Over 2 Bcf of that gas has been produced from 6 gas wells leaving over 13 Bcf in the reservoir. Gas is present in two wells immediately south of the leases.
Initial production rates from the existing wells have been just under 1 Mmcf per day. Absolute Open Flow Rates (AOF's) are in the order of 3 to 5 Mmcf per day with one as high as 14 Mmcf per day. Production has been held back to minimize water production. Three wells have a cumulative production of over 0.4 Bcf each, with one of these having produced 0.9 Bcf.
The Acadia Project is located in eastern Alberta approximately 160 miles due east of the City of Calgary, Alberta. The surface consists of gently rolling farm and ranch land with year round access and an established production and equipment infrastructure.
This area has good access for drilling rigs and well costs are expected to be $400,000 for dry hole costs and approximately $600,000 drilled, cased and completed. Gas and oil delivery and sales can commence as soon as the wells are equipped and tied in because of the nearby pipelines and delivery system.
The Project lands consist of 12 sections of Crown License rights and
three sections of Crown leases. These are currently held by a consortium of
three companies who have farmed out those rights in exchange for drilled
wells. Each well drilled by Emerson on the licenses earns a 49% Working
Interest in 4 sections. Each well on a lease earns Emerson a 49% Working
Interest in one section.
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