BOE Intel Field Roundup – Pouce Coupe South

For the second entry in our Field Roundup series, we’re analyzing one of the most popular locations associated with Canada’s Montney play: Pouce Coupe South. Just east of the Alberta-BC border, this field has been the location of 159 new licences since January 1, 2022. With 8 unique licensees during this period, it’s clear that the area has broad-based appeal for Canadian producers. Although 70% of wells licensed in this field since 2022 target the Montney, we have included all wells targeting the Montney, the Doig, and the Charlie Lake from all producers in order to examine the field wholistically.

Pouce Coupe South Mineral Rights (Birchcliff in blue, Advantage Energy in yellow, CNRL in red, Kelt in green, Longshore in brown, TAQA North in black, Canlin in purple, Insignia in white)

The 159 Pouce Coupe South licences issued since the start of 2022 have mostly been obtained by either Birchcliff or Advantage, with the remaining 46 licences split between 6 other companies. Advantage’s new licences are spread across the company’s largely contiguous land position in the southwest portion of the field. Birchcliff, meanwhile, has been licensing in close proximity to Kelt Exploration, Insignia, and TAQA North. This is particularly true in townships 077-11W6 and 078-12W6, which have both seen activity from 3 different producers. Longshore has been the third most active licensee, and are unique among this peer group in the sense that they have exclusively targeted the Charlie Lake producing formation. Interestingly, CNRL has obtained 2 licences since the start of 2022 despite not having spud or licensed a well in this field since 2014. Given the company’s substantial mineral rights holding in this region, CNRL’s lack of activity in this field compared to its neighbours is noteworthy. Having said that, the company has spud wells in a number of neighbouring fields such as Pouce Coupe, Gordondale and Valhalla, so CNRL may simply be prioritizing other areas of its holding in the region.

Pouce Coupe South Licences since January 1, 2022 (Advantage in orange, Birchcliff in blue, Canlin in purple, CNRL in pink, Insignia in grey, Kelt in green, Longshore in brown, TAQA North in black)

The wells licensed in this field since January 1, 2022 have been highly productive. As demonstrated in the chart below, production from the 59 on prod wells reached over 164,000 mcf/d in natural gas and 1,800 BBL/d in oil production in April 2023. This equates to roughly 29,100 BOE/d, an average of 494 BOE/d per well. Production declined slightly in the most recent month available (May 2023), but this is unlikely to suggest the beginning of a persistent downward trend; this area was impacted by wildfire-related production curtailments in May and June 2023.

When we examine drilling activity in Pouce Coupe South, CNRL and Canlin drop out as they have not spud any wells in this field in the past 5 years. Birchcliff has been the clear leader in drilling activity, which is unsurprising given the company’s prominent position in this field and how central Pouce Coupe is in its corporate growth plan (check out the company’s May 2022 presentation for more information). Advantage has also drilled fairly consistently in this area, apart from 2019 in which no wells were spud. Longshore Resources spud 20 wells in 2022, which helps explain the steady production growth we’ve seen from the company so far in 2023 (see below).

With respect to production by company, in most months Birchcliff has led all companies in Pouce Coupe South production from wells licensed since January 2022. With that said, Advantage has caught up rapidly and currently accounts for 8 of the top 10 wells by recent production. Advantage’s top well (UWI: 100070607613W600) produced an impressive 7,175 mcf/d in May 2023, which is actually a decline from the well’s peak rate of 9,665 mcf/d in March 2023.

Top 10 Pouce Coupe Wells Licensed since January 1, 2022

* Please note that the recent gas and oil measurements are approximations that take total production for a month and divide it by 30 days.

This analysis was made possible with BOE Intel and Petro Ninja. For more information on these products, contact us.