Northern Alberta And British Columbia
A Prime Trust Asset
Northern Alberta and B.C. is ARC's largest core area and represents approximately one-third of ARC's production. Northern Alberta and B.C. is a prime Trust asset due to the relatively low-risk drilling targets, low operating costs, high netbacks and a diverse base of operated and non-operated assets. The area became a major growth center in 2000 with the acquisition of producing assets at Ante Creek. Through the Star acquisition in 2003, ARC gained the new area of Dawson that is a relatively immature, tight Montney natural gas development which was brought on stream by Star in 2001. ARC further consolidated its area in Ante Creek with an acquisition in late 2009. In 2009 average daily production for the area in was 22,798 boe/d.
ARC has developed significant expertise in developing tight low permeability oil and gas formations through its operational activities in Ante Creek and Dawson. To successfully produce from these formations, large hydraulic fracture stimulations are required along with sophisticated completion techniques. The higher capital costs required for these types of resource plays generally require a higher commodity price than more conventional projects but deliver a stable long-term return. After an initial period of steep decline, these wells will produce at stable rates and will have a long-life reserve life index (RLI).
Recent Acquisition
Dec 14/2009: ARC announces an agreement to purchase, directly and indirectly, all of the units of a general partnership formed to hold oil and gas assets in Ante Creek and other areas of northern Alberta. To download a pdf version please click here.
Jan 8/2008: ARC Energy Trust announces two new gas discoveries and a large land acquisition in the Dawson area. To download a pdf version please click here.
Area In Detail
Dawson Area
The Montney play in the Dawson area has become one of the hottest plays in our industry today. Drilling for tight gas did not, econmically speaking, make sesne in the past; however, advances in fracturing and completion technology have made it economic for oil and gas companies to exploit this type of asset. ARC is proud to have been one of the first players in the Montney, a gas rich play in northeast Britich Columbia. ARC has also been a pioneer in the use of multi-stage frac technology used in the completion of horizontal wells that have been instrumental in the development of this resource play.
Activity in the Montney is higlighted by the continued progress of a new 60 mmcf per day gas plant at Dawson. The gas plant is expected to be operational by the end of the first quarter of 2010.
Key Property - Ante Creek
ARC purchased its initial working interest in Ante Creek in early 2000. With subsequent acquisitions, ARC has become the dominant owner in this light oil and gas play with a working interest of 97 per cent. Current production at Ante Creek is over 5,000 boe per day. The production split in this area is approximately 52 per cent oil and NGLs and 48 per cent natural gas.
Field Office
Superintendent: Dave Harris
9909 - 102 Street, Grande Prairie, Alberta T8V 2V4
Tel: (780) 402-3300-----Fax: (780) 402-3341
Superintendent: Gord Hallgren
9909 - 102 Street, Grande Prairie, Alberta T8V 2V4
Tel: (780) 402-3300-----Fax: (780) 402-3341