Near-term Growth Prospect with Vast Resource Potential
The Parkland/Tower property is a Montney liquids-rich natural gas and light oil play, located in northeast British Columbia. The area was a key development property in 2013, and provides both near-term growth catalyst and long-term resource potential. In 2013, a major capital program in the area set the stage for continued material value creation in 2014. The 2013 program included a robust pad-focused drilling program, which resulted in an impressive 42 per cent increase in production in the fourth quarter of 2013 compared to the fourth quarter of 2012. During 2013, ARC invested in infrastructure in this area, completing construction of the Parkland gas processing and liquids handling facility. The facility has a design capacity of 60 mmcf per day of gas processing and 8,000 barrels per day of liquids handling capacity. Parkland/Tower delivers excellent economics, with the Parkland block producing liquids-rich natural gas production and Tower producing mainly light oil with condensate and additional liquids in the gas stream. Still in early stages of development ARC is focused on enhancing its technical and resource knowledge in this area.
- Two 8 well pads completed through to the end of 2013
- Increased production by over 100% year-over-year
- Significant Resources potential of 1.5 billion barrels of discovered oil initially in place
- 15 horizontal wells drilled on 4 multi-well pads
- Successfully proved dual layer development opportunities
- Completed construction of 60 mmcf per day gas plant and liquids handling facility
- Added pipeline and surface infrastructure
The Parkland/Tower area will continue to be a major focus in 2014 with plans to execute a $190 million capital program during the year. Planned activity will include the drilling of 13 liquids-rich natural gas wells at Parkland and 17 oil wells at Tower. All drilling in the area will be on pads, further capitalizing on increased efficiencies in the region. ARC expects 2014 production to average 20,000 boe per day in the area, an approximate 100 per cent increase in production relative to 2013 levels. We will systematically bring new wells on-stream over the course of 2014 and 2015 to utilize processing capacity at the new plant.
Parkland/Tower - 5-Year Production Growth