Cona has a focused and concentrated asset base of approximately 160,000 net acres along the Alberta and Saskatchewan border.
The Corporation’s core areas are in southwest Saskatchewan.
Some of our Key Properties are:
Cona has a 100% working interest in the Cactus Lake property. The field produces oil primarily from two overlying reservoirs: the Lower Cretaceous Rex and the Mississippian Bakken. These reservoirs define the Basal Mannville Bakken pool. There is also secondary production from the Lower Cretaceous Lloydminster, Waseca and Sparky formations. The Cactus Lake property has a DOIIP assignment of 469 MMbbl.
In September 2011, the Company began infill drilling the reservoir down to 10 acre spacing. At the same time, the Corporation began optimizing the effectiveness of the waterflood through realignment of injection patterns and increased waterflood facility capacity. Since 2011, Northern Blizzard has more than doubled oil and water handling capacity in this area.
During 2016, the Company drilled 29 Basal Mannville Bakken wells. The property has a significant drilling inventory that will support infill drilling for several more years.
The Ryder Scott Reserves Report recognizes 43 MMboe 1P and 65 MMboe 2P reserves and 165 1P and 238 2P drilling locations at Cactus Lake.
Cactus Lake Polymer Flood
In addition to waterflood recoveries, Cona believes it has proven that there are incremental recoveries in the Lower Cretaceous Rex, Sparky and Mississippian Bakken formations with polymer flood.
In 2012, the Company initiated a polymer flood in the Basal Mannville Bakken formation, which has a DOIIP assignment of 402 MMbbl. Prior to the polymer flood, the area was drilled to 10 acre spacing. At December 31, 2016, approximately 60% of DOIIP and 65% of oil production is under polymer flood and 39 MMbbl of polymer solution has been injected into the Cactus Lake Basal Mannville Bakken pool since project inception. Production response from the injection of polymer is evident through lower water-oil-ratios and stabilized inclining oil rates. The Corporation plans several more years of active development to complete the project.
Cona has a second polymer flood project located in the southwest portion of the Cactus Lake Bakken pool that produces from the Sparky formation. This polymer project was developed using horizontal wells and has a DOIIP assignment of 12 MMbbl. Project level production response to polymer injection has been realized across the pool. At December 31, 2016, approximately 3 MMbbl of polymer solution has been injected into the Cactus Lake Sparky pool.
Cona holds an approximate 70% working interest (based on 2P reserves) and operates 98% of the production at the Winter property. The main producing horizon is the Cretaceous Cummings formation, which consists of a 10 to 15 metre oil column mostly underlain by an aquifer. The Winter property has a working interest DOIIP assignment of 443 MMbbl.
In 2016, Northern Blizzard drilled 16 (13.6 net) development wells and one (1.0 net) injection well at Winter. Unlike the majority of Northern Blizzard’s properties, production at Winter is higher-viscosity oil that is not amenable to waterflooding or polymer flooding. As a result, the strategy for this reservoir is to concentrate on horizontal infill drilling.
Cona has a 100% working interest and operates all of the Court property except for five producing gas wells where it has a 50% working interest. The field produces primarily from three Mississippian Bakken pools (Court Main, Court SW and Fusilier). Other producing formations include the Cretaceous Waseca and the Viking. The Court property has a DOIIP assignment of 117 MMbbl.
The Bakken was the primary zone targeted since 1982 and as a result, the Waseca is largely underdeveloped. Northern Blizzard is evaluating additional drilling and waterflood potential of the Waseca pools.
Bakken infill drilling was initiated in the first quarter of 2011 and has proven the existence of significant quantities of oil that have been bypassed or unswept by the existing waterflood. The Court Main Mississippian Bakken pool is one of the most successful waterfloods in Cona’s portfolio. Ryder Scott assigned a 39% waterflood recovery factor based on 2P reserves to this reservoir.
Cona has a 100% working interest in the Cuthbert property. The main producing horizons are the Cretaceous Bantry and Basal Quartz formations. The Cuthbert property has a DOIIP assignment of 46 MMbbl. In the first quarter of 2012, the Company initiated a successful 10 acre development program at Cuthbert. The field is currently under waterflood.
The Ryder Scott Reserves Report recognizes one MMboe 1P and two MMboe 2P reserves and seven 1P and 23 2P drilling locations at Cuthbert.
Cona holds a 33% non-operated working interest (based on 2P reserves) in the Mantario property. Production is primarily from the Cretaceous Glauconite formation with secondary production from the Cretaceous Colony, Waseca and Basal Quartz formations. The Mantario property has a working interest DOIIP assignment of 42 MMbbl.
The Ryder Scott Reserves Report recognizes three MMboe 1P and four MMboe 2P reserves at Mantario.
Cona holds a 98% working interest based on 2P reserves for Thermal properties, and the Company has identified a number of SAGD opportunities in the McLaren formation. These projects have a working interest DOIIP assignment of 143 MMbbl with a dead oil viscosity range of approximately 6,000 – 27,000 cP at reservoir temperature. At the time of the Ryder Scott Reserves Report, the Company did not have any pending applications for further development of SAGD projects beyond Plover Lake SAGD Sec 22 (as defined below) which is currently operating. Due to the operational performance of Plover Lake SAGD Sec 22 and the timing of development of Thermal properties, Ryder Scott has lowered the 1P and 2P reserves attributed to Thermal properties in the Ryder Scott Reserves Report as at December 31, 2016 when compared to its reserves report as at December 31, 2015.
In total, for all SAGD projects the Ryder Scott Reserves Report recognizes three MMboe 1P and 19 MMboe 2P reserves and seven net 1P and 32.4 net 2P well pair drilling locations.
Plover Lake SAGD Sec 22
Oil production from the Company’s first SAGD project commenced in August 2014 from a channel deposit in the McLaren formation in the Plover Lake area (“Plover Lake SAGD Sec 22”). Cona holds a 100% working interest based on 2P reserves. The target reservoir was delineated with observation wells, which show sands up to 18 metres thick with no barriers to steam distribution within the reservoir. Due to suboptimal steam injection, the Plover Lake SAGD Sec 22 project produced an average of 232 bbl/d of oil during 2016. Due to operational performance of the project and the timing of future development, Ryder Scott has lowered the 1P and 2P reserves attributed to Plover Lake SAGD Sec 22 in the Ryder Scott Reserves Report as at December 31, 2016 when compared to its reserves report as at December 31, 2015. Cona believes that enhanced steam injection practices will improve future performance from the Plover Lake SAGD Sec 22 project.
The Ryder Scott Reserves Report recognizes three MMboe 1P and six MMboe 2P reserves at Plover Lake SAGD Sec 22.