E&P
Coal Bed Methane Project – Delburne, Alberta
•4 shallow well locations to drill now
•16+ locations in Inventory
•Proven Gas Reserves, Low Risk
•Low Case IRR of 17%
•Gas Price $7.50/mcf IRR of 80%
•Potential for deep oil and gas
South Alberta has large Coal Bed Methane (CBM) Potential. We are targeting an area in South Central Alberta with existing CBM production in the Scollard, Horseshoe Canyon and Belly River Formations. We also have rights to conventional light crude oil and deeper natural gas. We are focusing on a CBM “Fairway” where Encana, Apache, CNRL, Vermillion and Fairborne and others, have pioneered, and mastered, the techniques to drill, complete and produce shallow CBM wells. This is a rural farming area that is close to services, pipelines and major population centers. Out targets are the shallow, and dry (meaning no water is produced with the gas) Scollard, Horseshoe Canyon and the Upper and Lower Belly River Coal Seams. The deeper Mannville Coals have more CBM, but are not yet economical to produce. In the Delburne region, just a few miles East of Red Deer, there are more than 600 producing CBM wells – and the potential for thousands more. We hold 2+ sections (4 wells per section) of freehold mineral rights and are negotiating with owners for additional leases.
