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

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...

Moody's: E&P spending to dip as crude oil prices slide

12/08/2014 Weakening crude oil prices will cut exploration and production spending by independent producers in the US next year and make integrated oil and ga...

US proved oil, gas reserves continue to climb

12/04/2014 US proved reserves of oil and natural gas have increased by 9% and 10%, respectively, according to the US Energy Information Administration. The 3....

US-African energy moves

12/01/2014 Getting electricity to more Africans is a top priority at the US Department of State's Bureau of Energy Resources (ENR), an official told a House F...

Global reserves, oil production show increases for 2014

12/01/2014 Oil & Gas Journal's annual look at worldwide proved reserves shows increases compared with a year ago. Reserves estimates for crude oil and lea...

Oil & Gas UK rebuts industry-subsidy claim

11/24/2014

Oil & Gas UK has issued a sharp rebuttal to reports that UK producers enjoy generous governmental subsidies.

Gas price uncertainty could defer projects, Niko says

11/17/2014 Niko Resources Ltd., Calgary, says uncertainty regarding natural gas price premiums in India could cause deferral of development of certain discove...

What's sustainable?

11/17/2014 Sustainability is eternally important and perpetually enigmatic. It's like justice: widely seen as embodying transcendent value yet defined in disp...

White Papers

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

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

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


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

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