Alberta Colorado shales joint venture forms

Stealth Ventures Ltd., Calgary, signed a joint venture with MOI Resources Ltd., a private Saskatchewan operator, to develop gas in the Cretaceous Colorado Group shales resource play in western Canada.

By OGJ editors
HOUSTON, Apr. 5
-- Stealth Ventures Ltd., Calgary, signed a joint venture with MOI Resources Ltd., a private Saskatchewan operator, to develop gas in the Cretaceous Colorado Group shales resource play in western Canada. Terms are not disclosed.

The Cretaceous Colorado Group in the Western Canadian Sedimentary Basin is represented almost continuously in a 1,000-km east-west profile. Of the more than 250,000 wellbores that penetrate the Colorado, most were drilled to target deeper horizons.

Meanwhile, following Stealth’s initial downspacing approval by the Alberta Energy Resources Conservation Board to proceed with eight wells per square mile on two sections of land in the Wildmere, Alta., area, Stealth has added 17 more sections.

Consulting engineers completed extensive rate transient analysis on location 15-10-50-06 w4m, which had over 2 years of production data, and showed that ultimate well density will approach 18 wells per section (36-acre spacing) to ultimately drain the resource before interference occurs.

A further 11 sections are awaiting a board decision, and the remaining Stealth acreage totaling 80+ sections (gross) are in process with Fekete. With full spacing approval, Stealth will have hundreds of locations available for development.

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