Vermilion tags Alberta liquids resource plays

By OGJ editors
HOUSTON, June 3
-- Vermilion Energy Trust, Calgary, said drilling programs in Cretaceous Cardium light oil and gas-condensate resource plays in north-central Alberta will provide “organic production growth for the foreseeable future.”

Vermilion said its holdings in the West Pembina and Drayton Valley areas have grown to 150 net sections that are expected to support more than 426 net locations in the West Pembina Cardium fairway, including at least 15 net Cardium light oil horizontal wells to be drilled in 2010.

Vermilion expects to hike drilling to 30-40 Cardium light oil wells in 2011.

The company has an inventory of more than 120 net locations identified for horizontal drilling, and will see nine gross (6 net) wells drilled in 2010, including four horizontal wells (2.5 net). The wells target the Cretaceous Ellerslie and Notikewin formations that deliver liquids at 40-60 bbl/MMcf of gas and provide strong economics even at current gas prices.

Vermilion has drilled five Cardium wells to date, all completed with 18-stage oil fracs containing 20 metric tons of sand. Seventy of 72 fracs were successfully placed during completion of the first four wells. The wells are roughly 1,800 m deep with 1,250-1,500-m legs in sandstones estimated to be 8 m thick.

The 30-day production from the first three wells, after recovery of the hydrocarbons used in the fracs, averaged 440 boe/d/well, 90% light oil and 10% associated gas.

“Vermilion believes the geological deposition characteristics in West Pembina will provide for highly repeatable results for this play going forward, and plans to double its level of activity in the area for 2011,” the company said.

Vermilion also participated in two horizontal conventional Notikewin gas well completions in the first quarter of 2010, with optimized 30-day average gross production rates of 4.0 MMcfd of gas and 160-200 b/d/well of condensate. Vermilion has identified an inventory of 26 net horizontal conventional Notikewin prospects.

Vermilion will drill and complete its first horizontal Ellerslie well using slick water frac technology late in the third quarter of 2010. The company has previously completed a vertical Ellerslie well using a slick water frac, achieving optimized 30-day average production rates of 2.0 MMcfd and 100-120 b/d of condensate.

Applying slick water fracs to multistage horizontal completions is expected to yield similarly strong performance gains to those achieved with the successful vertical well completion, the company said. Vermilion has an identified inventory of more than 40 net horizontal Ellerslie drilling opportunities.

Vermilion is in the early stages of evaluating the development potential of an emerging unconventional Notikewan resource play through application of horizontal drilling and multistage slick water fracturing techniques. The play has been tested using two operated vertical slick water fracs and one nonoperated horizontal completion.

Vermilion plans to further test and de-risk the play with two to four vertical recompletions and one operated horizontal completion in the coming winter. Vermilion has identified 54 Notikewan resource prospects in the West Pembina area.

Related Articles

Study says most of California's fracturing done in Kern County

01/26/2015 Almost all hydraulic fracturing done in California happens in the southwest portion of the San Joaquin basin in Kern County, said a scientific stud...

Watching Government: This year's 'infrastructure' matters

01/12/2015 In one of the busiest Decembers ever for oil and gas in the nation's capital, one word-infrastructure-kept popping up as a key challenge for 2015.

For the US economy, a falling oil price has drawbacks, too

01/05/2015

Cheer in the US about an economic lift from falling oil prices needs qualification.

Russia sanctions realign Arctic exploration, geopolitics

01/05/2015 The latest Western sanctions on Russia's Arctic gas industry, including OAO Gazprom and OAO Novatek, have had a geopolitical impact on the Kremlin....

Trinidad and Tobago to develop ‘master plan’ for gas development

12/29/2014 Trinidad and Tobago’s government has hired UK-based consulting firm Poten & Partners to develop a natural gas master plan for the Caribbean twi...

Woodside to buy Apache's interests in Wheatstone, Kitimat LNG for $2.75 billion

12/22/2014 Woodside Petroleum Ltd. has agreed to acquire interest in the Wheatstone LNG and Kitimat LNG projects, respectively in Western Australia and Britis...

EIA: US proved oil, gas reserves continue to climb

12/15/2014 US proved reserves of oil and natural gas have increased by 9% and 10%, respectively, according a recent report from the US Energy Information Admi...

Falling prices may pose new test for China oil policies, speakers say

12/15/2014 China, which successfully revised its oil strategy in response to new technologies since 2008, could face fresh tests if prices stay low for a prol...

Encana plans to hit the ground running in Permian

12/12/2014 Encana Corp. has announced its second major acquisition in a Texas oil play this year, agreeing in September to acquire Permian basin-focused produ...

White Papers

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST



On Demand

Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected