Vermilion Energy Inc., Calgary, is testing its first vertical appraisal well as it embarks on a new growth initiative in shale oil and liquids-rich gas resource opportunities in western Canada.
The company has acquired 408.5 net sections of undeveloped land, including 227 largely contiguous net sections on the Duvernay trend in the Edson area. Much of the Duvernay position underlies the company’s Cardium development area. Vermilion has invested $84 million since early 2011 to acquire the lands.
The Duvernay position extends across the entire liquids-rich gas fairway “and, if successful, is expected to provide condensate yields of between 30 and 300 bbl/MMcf,” the company said.
The nearly contiguous nature of the Duvernay-Cardium positions is expected to yield cost advantages that will be further enhanced by the plays’ proximity to Vermilion’s extensive pipeline and processing infrastructure. The company will also look to leverage extensive preexisting 3D seismic coverage in its evaluation and testing of the resource.