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Onion Lake, Saskatchewan
KEY FACTS
| Working interest | 87% - 100% | 
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| Land |
10,300 net acres |
| 2P reserves |
12.6 MMboe |
| 2C resources |
80 MMboe |
| API |
11° oil |
| Q3 2011 Production |
7,065 boe/day |
| Depth | 400 - 600 metres |
| Formations | Dina, Cummings |
| Production Potential | 15,000 boe/day |
During 2010, we drilled 30 successful conventional heavy oil wells at Onion Lake. The year-end reserves and contingent resource (best estimate) reports prepared by Sproule identified over 250 potential drilling locations on our lands. We plan to drill over 100 of these in 2011.
In addition to this large conventional drilling inventory, a portion of our lands provides an opportunity to initiate a thermal recovery scheme. This is due to the pay thickness of the reservoir beneath these lands, which ranges from 15--23 metres and is capable of supporting a 10,000 bbls/day SAGD operation.
It is likely that we will continue conventional drilling at Onion Lake over the next three or four years before we tackle the thermal project, but we are assessing whether it is feasible to accelerate the thermal project.
All of the year-end 2P reserves assigned to the Onion Lake area relate to conventional development; however, over 90% of the 2C resources attributed to Onion Lake relate to thermal recovery.
In 2011, we will also evaluate constructing a sales pipeline near the Onion Lake field. The installation of a pipeline would lower operating costs by reducing the distance oil production is trucked.
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