Revitalizing a Mature Oil Field
A founding property for ARC, today Pembina remains a key asset in our portfolio. The Pembina field produces high quality light crude oil from the Cardium formation, Alberta’s first light oil resource play; characterized by large oil in place reserves and low risk, stable production. The geology of this prolific field is complex, and 60 years on from its initial discovery, our industry is still working to access the full potential from this reservoir. Production in the area continued to exceed expectations with strong well performance throughout the year. The application of new technology, such as horizontal drilling and water injection, has proven successful in unlocking previously unrecoverable resources and capturing incremental production at existing wells. ARC continued to focus on the acquisition and construction of infrastructure in the region; enabling greater control over costs and run-times. ARC’s deliberate and paced development program at Pembina is aimed at managing production declines, while maximizing free cash flow.
- Increased production 7% year-over-year
- Drilled 39 gross operated horizontal wells
- High graded asset base with divestment of approximately 1,600 boe per day of non-core assets
- Achieved positive results in unlocking potential in bioturbated sandstone sequence
- Expanded infrastructure and processing capacity
In 2014, ARC will continue to focus on the long-term value of the Pembina property, spending $120 million in the area and drilling 44 gross operated horizontal Cardium wells. Production in the area is expected to remain relatively flat at 11,800 boe per day. ARC will continue with extensive work on waterflood management to optimize reservoir recoveries.
Pembina - 5-Year Production Growth