Alberta Clipper Added 2.2MM Proven BOE in 2008
Alberta Clipper increased the production base of the Company from 2,300 boe/d in 2007 to 3,136 boe/d in 2008, an increase of 36% while increasing its reserve base by 18% to 11.1 MMboe. The increases are all due to growth in Alberta Clipper's core areas where the Company continued to invest in drilling and infrastructure and was successful in closing several strategic acquisitions. Operations during
2008 were focused in Western Alberta ("WAB") and Northeast British Columbia ("NEBC").
Alberta Clipper drilled 17 (10.1 net) wells in 2008 resulting in 4 (1.7 net) oil wells and 10 (5.9 net) gas wells. Overall, the Company experienced an 82% commercial success rate for the year and operated 65% of its drilling program.
Expansion activities within the Company's core areas continued during the year with over 68,700 net acres of land being acquired in the NEBC and WAB core areas. New 3D seismic data acquired through the year totaled 868 square kilometers, bringing the Company's total 3D seismic coverage to over 3,900 square kilometers. Existing 3D data on the Company's Deep Basin assets at Kakwa yielded a new pool discovery and 3 successful delineation wells during the year. Kakwa remains one of the Company's 2 core Deep Basin assets where
the Company's inventory of multi-zone development opportunities now stands at 20.
During the fourth quarter, Alberta Clipper drilled 3 successful development wells on the Company's Deep Basin assets consisting of 2 gas wells at Kakwa and 1 gas well at Bigstone. In addition, 2 successful development wells were drilled at Sylvan Lake and the Company completed the testing of the Montney Zone at Beg. Hi-lights of the program included proving up an extension to the Kakwa Falher pool, where the Company holds an average 40% working interest ("WI"), and where the 2 wells drilled during the quarter are currently on production at a combined rate of 220 boe/d (90 boed net). Further expansion into scaleable development plays was successful at Beg where the Company flowed gas from the Montney zone at a rate of 240 Mcf/d following a 30 tonne fracture treatment. The Company holds a 100% WI in 9,847 contiguous acres of Montney rights in the area.
At Trutch BC, the Company completed its road extension and bridge work during the period, thereby facilitating year round access to the property on both the north and south sides of Trutch Creek. Six locations are currently licensed on the property, and a further 4 locations are surveyed and ready to license. Alberta Clipper now has the infrastructure in place to expand the production base of the Trutch property once the gas price improves or costs mitigate.
Based on the year-end 2008 independent reserves report, Alberta Clipper added 2.2 million proven Boe and 2.8 million proven plus-probable Boe. Reserves additions replaced production by 194% on a proved basis and 249% on a proved-plus-probable basis in 2008. Proved developed producing reserves increased by 24%, total proved by 19% and total proved plus probable by 18% over year-end 2007.