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Projects

The Montney Play

The Montney is a Lower Triassic aged formation in the Western Canadian Sedimentary Basin extending over 180,000 square kilometres from north-east British Columbia to north-west Alberta.  The siltstones of the Montney Formation form part of the Western Canada ‘Deep Basin’ system, a pervasive hydrocarbon system of organic rich shales and siltstones were tight reservoirs exist in close proximity to matured hydrocarbon expelling source rocks.

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Like the Eagle Ford, Utica Shale, and other unconventional plays in North America, the Montney has dry gas, liquids-rich gas, and oil windows.  As the generated hydrocarbons are in-situ, or in very close proximity to the mature source rocks, the system becomes ‘inverted’ from the conventional sense so that water sits above the oil window, which in turn sits above increasingly dryer gas with depth.

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Context

Liquids-rich parts of the Montney in north-east British Columbia emerged and began to be developed in late 2013 and 2014. Following some exceptional results in liquids-rich areas the Montney was thrust on to the scene as one of the most commercially attractive and compelling unconventional prospects in North America.  A rush to find where new liquid-rich sweet-spots might emerge along the play ensued as existing and aspiring Montney companies started assessing new areas for land acquisition.
Like other unconventional plays, the heterogeneous nature of reservoir quality and liquids content within the Montney creates sweet-spots both laterally and vertically within the Land Section.  Using an extensive digital well-log dataset of over 10,000 existing public domain wells, the Montney JV aimed to identify potential new liquids sweet-spots in the play using a regional Common Risk Segment Mapping approach. 
Recognition of critical play elements within the hydrocarbon system were ‘stacked’ to identify potential sweet-spots.  Through calibration to existing production, Common Recovery Segment Maps were used to create detailed interpretations across the play. 


Sweet-spot Mapping 

The first step in understanding the play was to characterise and isolate the interpreted play components of the system.  Studying the >3500 horizontal wells currently producing in the play allowed us to develop an understanding of what the key components of the hydrocarbon system were.  Proven and potential ‘sweet-spots’ became apparent as the play components were ‘stacked’.  Following the sweet-spot mapping process several areas were high graded for targeted land acquisition, Figure 3. 

Whilst the Montney Resource Play is generally regarded as one of the most economically robust in North America, the Directors resolved that given the current market conditions and commodity prices the project would be better able to progress in a private company.

The company has been marketing the Inga land position to local operators which has resulted in a sale of its interests for net proceeds of C$1,050,000 in July 2016.  These funds will ensure the Company can maintain its solvency whilst the Market recovers. The Company is pleased to advise that the Caribou area land has been de-risked through nearby third party drilling and in-house geoscience work.