Resource Plays - Operations - Birchcliff Energy

Resource Plays

Birchcliff is focused on two established resource plays within the Peace River Arch: the Montney/Doig Natural Gas Resource Play and the Charlie Lake Light Oil Resource Play. Birchcliff characterizes its resource plays as plays that have regionally pervasive, continuous, low permeability hydrocarbon accumulations or systems that usually require intensive stimulation to produce. The production characteristics of these plays include steep initial declines that rapidly trend to much lower decline rates, yielding long life production and reserves. Resource plays exhibit a statistical distribution of estimated ultimate recoveries and therefore provide a repeatable distribution of drilling opportunities. As more wells are drilled into a resource play, there is a substantial decrease in both the geological and technical risks. These plays are ideally suited for the application of horizontal drilling and multi-stage fracture stimulation technology.

MONTNEY/DOIG NATURAL GAS RESOURCE PLAY

Birchcliff’s Montney/Doig Natural Gas Resource Play is centred approximately 95 kilometres northwest of Grande Prairie and, in the opinion of management, is one of the most sought after natural gas resource plays in North America. The Montney/Doig Natural Gas Resource Play contains six primary producing regions: Pouce Coupe, Pouce Coupe South, Glacier, Progress, Gordondale and Elmworth (which encompasses the Sinclair region and was previously described by Birchcliff as Elmworth/Sinclair area).

The Montney/Doig Natural Gas Resource Play in the Pouce Coupe area is approximately 300 metres (1,000 feet) thick and is classified by Birchcliff as a hybrid resource play because it is comprised of gas saturated rock with both tight silt and sand reservoir rock interlayered with shale gas source rock.

WORSLEY CHARLIE LAKE LIGHT OIL RESOURCE PLAY

The Charlie Lake Light Oil Resource Play is described by Birchcliff as a regionally extensive variety of restricted to nearshore marine facies. The Charlie Lake reservoirs are heterogeneous and consist of varying quantities of laminated and dolomitic, silty to fine-grained sandstones. The reservoir intervals typically exhibit porosity in the order of 8 to 15 percent, and net reservoir thickness of 3 to 30 metres. A critical component of the Charlie Lake Light Oil Resource play is the main trapping mechanism being a regional hydrodynamic trap setting up a large regional hydrocarbon column.

The Charlie Lake reservoirs on the Peace River Arch were historically drilled vertically with reasonable economic results. Starting in the 1980s, various companies drilled horizontal wells in the Charlie Lake reservoirs with varying results. Birchcliff was one of the first companies to utilize multi-stage fracture stimulation technology with horizontal wells in the Charlie Lake and has had very positive results.

Horizontal wells on the Charlie Lake Light Oil Resource Play that utilize multi-stage fracture stimulation technology are drilled to a measured depth of 2,500 to 3,500 metres and deliver initial productivity rates of 100 to 600 boe/d.

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