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Mooney, Alberta
KEY FACTS
| Working interest | 100% |
Click to Enlarge |
| Land |
47,680 net acres |
| 2P reserves |
10.7 MMboe |
| 2C resources |
40 MMboe |
| API |
16° oil |
| Q3 2011 production |
509 boe/day |
| Depth |
900 metres |
| Formation |
Bluesky |
| Production Potential |
7,000 - 10,000 boe/day |
At Mooney, a key milestone reached in 2010 was receiving regulatory approval to initiate an alkali, surfactant and polymer (ASP) flood on a portion of the field. ASP flooding involves adding a polymer to the water to thicken it and additional alkali and surfactant to mobilize additional reservoir oil. This ASP mix is then injected, re-pressurizing the reservoir and sweeping additional oil to the producing wells. We ran a polymer flood pilot at Mooney for about 18 months and in this short time recovered over 18 percent of the oil-in-place. Primary recovery rates without ASP flooding would typically be 3--5 percent.
We are currently constructing water and ASP handling facilities and expect start-up of the commercial flood during the second quarter of 2011. In phase 1, up to 22 of the existing wells will be shut-in and converted to ASP injectors. Peak production from the first phase of the flood is expected to be 3,000--4,000 bbls/day. This should be reached 12 to 18 months after initiation of polymer injection. Phase 2 of the polymer flood, on the western half of the Mooney field, will be initiated after results are received from phase 1 activities.
The Mooney field lies outside the designated Peace River oil sands region and is therefore not eligible for oil sands royalty treatment. However, the Alberta government has programs encouraging enhanced oil recovery (EOR) developments by reducing royalties on fields with tertiary recovery program . The Company has received EOR royalty status for a portion of the Mooney field and, therefore, initial royalty rates for production from the ASP flood are expected to be about 10 percent. At December 31, 2010, Sproule attributed proved plus probable reserves of 10.7 million barrels of oil equivalent to the Mooney area. In addition, as at December 31, 2010 Sproule has assigned 40 million barrels of contingent resource (best estimate) to the Mooney lands.
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