NuVista’s assets are concentrated within three core regions of the Western Canada Sedimentary Basin – Alberta Deep Basin, Eastern Alberta and Saskatchewan, and Northwest Alberta and British Columbia.
This diverse asset base provides NuVista with the flexibility to pursue light oil, heavy oil, liquids-rich natural gas, and shallow natural gas development and exploration opportunities. Our 2011 capital program of between $160 and $180 million will be allocated to a core capital program of high return oil and liquids-rich natural gas in our Deep Basin and Eastern Alberta and Saskatchewan core regions.
1. Alberta Deep Basin
The Alberta Deep Basin core region is comprised of the Wapiti, Kaybob-Waskahigan, Pembina, and Ferrier-Sunchild operating areas. The majority of these lands are in large contiguous blocks where we hold interests in multiple prospective zones including the Cardium, Dunvegan, Notikewin, Fahler, Cadomin, Rock Creek Nikanassin and Montney. In 2010, we drilled a total of 38 (26 net) wells in the Alberta Deep Basin with a success rate of 100%, yielding 22 natural gas wells and 16 oil wells.
In 2010, we focused on our Wapiti operating area, exploring for light oil in the Cardium formation and high rate liquids-rich natural gas in the Montney formation. We drilled 20 (12.8) net wells in the area and achieved a success rate of 100%, yielding 14 natural gas and 6 oil wells. Since 2007, we have grown production in Wapiti through increased drilling activity from 2,800 Boe/d to approximately 5,500 Boe/d at the end of 2010.
Within the Cardium oil resource fairway in our Pembina operating area, we drilled a total of 8 (5.8 net) wells achieving a success rate of 100%, yielding 7 oil wells and 1 gas well. Of the wells drilled, 7 were horizontal oil wells using multi-stage fracturing technology.
A small tuck-in property acquisition in 2010 added 800 Boe/d of production in our Ferrier-Sunchild operating area. Although we did not drill any wells in this area in 2010, we are planning to evaluate the liquids-rich Notikewin and Spirit River formations in 2011.
In our Kaybob-Waskahigan operating area we drilled 7 (6.5 net) Montney horizontal gas wells in 2010, using multi-stage fracturing techniques and have identified up to an additional 19 gross Montney horizontal well locations.
Average production for this region in 2010 was 14,795 Boe/d.
2. Eastern Alberta and Saskatchewan (W3/W4)
This core region includes heritage assets and properties acquired through strategic acquisitions and internally generated prospects, and is characterized by shallow formations prospective for natural gas and heavy oil in multiple horizons. It is comprised of our West Central Saskatchewan, Northwest Saskatchewan, Oyen, and Provost operating areas.
NuVista drilled a total of 25 (20.1 net) wells in this region, yielding 21 oil wells,
3 gas wells and 1 dry hole.
Heavy oil in the Birdbear formation was our primary focus for drilling in 2010 in our West Central Saskatchewan operating area. Our drilling program in this area focused on development and extension drilling at Hallam and Zoller Lake and resulted in 12 (9.3 net) oil wells.
Average production for this region in 2010 was 8,707 Boe/d.
3. Northwest Alberta and British Columbia
Established in July 2009 following the purchase of assets in the Martin Creek area in BC and the Rainbow Lake/Sousa area in northwest Alberta, this region is characterized by long-life reserves consisting of medium depth, multi-zone prospects, primarily for liquids-rich natural gas and light oil. NuVista drilled 7 (5.0 net) wells in 2010, yielding 6 gas wells and 1 oil well.
We have developed a significant inventory of shallow gas and Devonian oil plays in this region. For 2011, there will be continued focus on well workovers and production optimization.
Average production for this region in 2010 was 4,842 Boe/d.