HEAD OFFICE

Suite 970 - 717, 7th Ave S.W.
Calgary, AB
Canada T2P 0Z3

Office: (403) 668-0688
Cell: (403) 860-8692
Fax: (403) 366-8626

Arno Keller, B.A. Econ
President

Troy Lupul,
Director

James Costello, Executive Director
Corporate Capital & Financial Strategy

Southwest Saskatchewan Upper and Lower Shaunavon, Illerbrun/West Verlo Assets Sale

 

E and H Royalties Inc.(E and H ) has engaged NRG Divestitures to assist in the marketing and sale of its Illerbrun and West Verlo assets in South Western Saskatchewan.

E and H's gross/net current capability is 140/100 Bopd with a minimal re-activation capital investment. The Lower Shaunavon drilling opportunity provides 24 high-grade drilling locations capable of over 1,800/1,260 bopd gross/net.

E and H Royalties Inc. holds a 66.5 percent working interest in the suspended Illerbrun voluntary unit located approximately 350 km southwest of Saskatoon, Saskatchewan. The company also holds a 79 percent working interest in several tracts directly below and adjacent to the unitized lands. The Illerbrun Voluntary Unit (Upper Shaunavon pool) produced over 7.2 MMbbl of oil and 544 MMcf of solution gas between August 1, 1965 and May, 2005 when it was suspended. Peak daily oil production of 2,166 bbl/d occurred in 1974 while peak water injection of 8,273 Bwpd occurred in June 1972. The pool has the highest oil productivity and reserves recovery of all Shaunavon pools in Canada averaging over 865,000 bbl per unit well and over 650,000 bbl per combined unit and non-unit wells). The eight unit wells have produced 6.9 MMbbl or 96% of the pool production to date, and the remaining 4% was produced from the three non-unit wells. Production was suspended in May 2005 at approximately 120 bbl/d due to a combination of ineffective waterflood configuration, high operating costs and suspension of the third-party owned take-away pipeline terminal located at the unit’s main 3-5-12-17W3 oil treater and battery complex.

The Company’s operating partner is Federated Co-operatives Limited who holds a 21 percent working interest in the unitized lands. Federated Co-operatives are the fourth most active driller in the Shaunavon Oil play based on 2013 to 2016 data, drilling 20 Shaunavon wells during that period.

E and H Royalties Inc. holds a 100 percent working interest in the West Verlo property located 320 km Southwest of Saskatoon, Saskatchewan. Historically, the West Verlo upper Shaunavon pool produced over 369 Mbbl of oil, 9.9 MMbbl of water and 19 MMcf of solution gas between September 1, 1966 and June 30, 2017. Peak calendar daily oil prduction of 82 bbl/d occurred in 1997 while peak water disposal of 2,300 Bwpd occurred in June 2003. The pool is developed with a central treater, battery and tank farm, and currently has 4 suspended oil wells one standing well, and one injector/diposal well. The asset is currently shut-in awaiting reconfiguration to a waterflood scheme.

Production testing and upgrading pumps during 2016 resulted in production of 20 bbl/d, due to water disposal well limitations. E and H mapping indicates the water disposal well to be in a separate pool therefore application was made and approved for injection into the 5-28 well. Based on area analogs, and proper pressure maintenance, the pool could be capable of over 80 Bopd.

  • CLIENT E and H Royalties Inc.
  • YEAR 2017

PURCHASE INQUIRY

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