Convega Energy Ltd. has retained Western Divestments Inc. to divest a 100% operated working interest in its Cessford, property located approximately 200 km from Calgary and 57 km from Brooks, in southern Alberta in T25-R11 W4M.
The property consists of 1280 acres of land with P&NG from surface to base Mannville excl. NG in the Colorado and is developed with 4 oil wells producing from the Mannville S13S pool and 1 injection well, 1 gas well producing from the Mannville C (Glauconite) pool and 2 observation wells completed in the Mannville S13S.
Current production from the oil wells is 12 bbl/day of 20 deg. API oil and 60 mcf/day of solution gas, water production from the pool is re-injected. The Mannville C gas well 14-18-025-11 W4 produces at a rate of 270 mcf/day gas and 2 bbl/day of Pentanes. The Manville C pool was discovered in the late 50’s and has cumulatively produced over 35 million barrels of oil and 112 billion cubic feet of gas. 14-18 has produced 7.9 BCF of gas to date and from production decline analysis the well will recover a minimum of 1 to 2 BCF.
Cessford Mannville S13S Pool
Cumulative production from the Mannville S13S pool to date is 270,000 bbl. of oil, 635.4 MMcf of gas and 1,035,000 bbl. of water. The original reservoir pressure was 1250 psi and is currently 375 to 400 psi. From material balance the initial oil in place calculated at a volume of 2,265 mstb. From production decline the remaining recoverable oil reserves are 66,000 stb. The total primary production of 336,000 bbl. would represent 15% of the initial oil in place an average recovery for a solution gas drive reservoir.
The capital requirement to establish the waterflood would be limited to the re-completion of the 02/14-18 well as a water source by abandoning the Mannville S13S zone, perforate the Viking, install tubing and PCP pump, install power and install a flowline from the well to the injection pump. The cost to re-complete and equip the source well would be $175,000. All other required facilities are in place and operating.
The LLR asset value is $1,019,158.13 with an LLR liability of $686,478.00, Property LLR ratio is 1.49 as of June 2, 2018. The gas well was down for four months over the winter due to pipeline freeze up. These numbers will improve significantly in July.
The bid deadline for this offering is Thursday, August 9th by 4 pm.
If you would like to obtain additional information and book a data room to review well files, kindly contact Moya Little. Moya can be reached at 403-543-4080 office, or 403-519-8351 cell. The Confidentiality Agreement and Teaser can also be found at westerndivestments.com/2018-divestments/.