Nextraction owns rights to 2,000 net acres (3.125 sections) in the Provost Viking A pool in east-central Alberta, situated in the heart of the shallow Viking light oil trend that spans from the Dodsland field in Saskatchewan to the Redwater field in Alberta. We own a 50% working interest in the Alexandra Provost Viking A Unit, covering 3.25 sections, along with 1 section situated 1 mile west and outside of the Unit. Contiguous to this section, Nextraction also owns 1 section at a 100% working interest. Extensive development of the Viking sand has occurred in the area, with the majority of the operators trending towards shorter horizontal legs, with tighter fracture spacing. Nextraction believes this is the most prudent development strategy on our acreage, and in 2012 drilled 3 wells using this approach with excellent success. All 3 wells had horizontal legs between 600 and 700 m long, with the shortest leg being fractured in 10 stages and the longest leg with 11 stages.
Our second well on the property, the 13-6 well, was drilled in July 2012 between two historical vertical producing wells that have produced a total of 394,000 bbls of oil to date. After being placed on pump, the well achieved a peak monthly rate of 85 bbls/d. After 7 months of production, the well has stabilized at approximately 70 bbls/d, supporting the company’s belief that there is still a large amount of recoverable oil to be captured in the developed parts of the pool. The third well on the property, the 16-34 well, was drilled in August and flowed oil for its first month of production at a rate of 105 bbls/d. The well is pumping and after 6 months of production has stabilized at approximately 70 bbls/d. This well was key in proving the productive potential of the company’s western acreage, which had no reserves assigned at year end 2011. Nextractions fourth well on the property, the 8-34 well, was drilled in November 2012 and was placed on production in mid February 2013. The well is still cleaning up fracture fluid but initial results are in line with management’s expectations.
Nextraction has identified a further 24 drilling locations on our 50% interest lands, as well as an additional 8 wells on our 100% owned acreage, for a substantial inventory base of repeatable and scalable development drilling.
At year-end 2011, we had the following net, working-interest reserves* assigned to the field, weighted 96% towards light oil:
- Proved Producing – 48 Mboe
- Proved Undeveloped – 28 Mboe
- Probable – 56 Mboe
- Total Proved plus Probable – 132 Mboe
*Based on reserves evaluated by GLJ Petroleum Consultants as of December 31, 1011. The report is a National Instrument 51-101 compliant document