Our operations are concentrated within our one core area, the Peace River Arch, which is centered northwest of Grande Prairie, Alberta, adjacent to the Alberta/British Columbia border. The Peace River Arch is considered by management to be one of the most desirable natural gas and light oil drilling areas in North America.
The Peace River Arch is one of the most prolific natural gas and light oil producing areas of the Western Canadian Sedimentary Basin and is generally characterized by multiple horizons with a myriad of structural, stratigraphic and hydrodynamic traps. The Peace River Arch is highlighted by the Deep Basin hydrocarbon trapping phenomena. The Deep Basin is a hydrodynamic or permeability trap where the water in the updip position cannot travel through the fine grained reservoirs with characteristics that include overpressured reservoirs, continuous hydrocarbon columns, low water production and long-life reserves with low terminal declines. The Peace River Arch provides all-season access that allows the Corporation to drill, equip and tie-in wells on an almost continuous basis. In addition, Birchcliff has excellent control of and/or long-term access to infrastructure in the Peace River Arch, which helps us to control our costs and expand our production when market conditions recover.