Lone Pine Resources Inc., Calgary, is evaluating alternatives to fund a large light oil exploration prospect in the Devonian Slave Point formation at Hutch in northern Alberta.
Lone Pine estimates horizontal development well costs in the area at $4 million and estimates that each section may contain 5-11 million bbl of original oil in place.
The company acquired 99,840 acres of 100% working interest land prospective for Slave Point light oil in the Hutch area in the quarter ended Mar. 31. Located 125 km northwest of the company’s Evi asset, the Hutch property provides Lone Pine with a potential second light oil fairway.
Lone Pine’s Slave Point land base now exceeds 180,000 gross acres. The Slave Point at Hutch is 1,000-1,100 m deep compared with 1,600 m at Evi.
Lone Pine was attracted to the Hutch area as an analogous extension to its existing Slave Point acreage on which it has drilled more than 100 horizontal wells.
Capitalizing on lower land costs by being a first mover in the area, Lone Pine has watched industry participants acquire land positions in the area and initiate drilling programs that have continued through this year’s first quarter.