Northwestern Alberta/Foothills
Galleon’s northwest drilling identifies possible Triassic oil play
A veteran player on the Peace River Arch, Galleon estimates its 2011 production at 14,500 boe per day.
Galleon Energy Inc. said its successful fourth-quarter drilling program resulted in the identification of a potential Montney oil play and provided further support for a possible Triassic crude program. At its Eastern Montney business unit, Galleon said it plans to further develop an oilprone Montney fairway in 2011. “Although it is still early in the development of this oil fairway, the potential of this oil play has been defined as significant,” the company said in a press release. Four horizontal wells (96 per cent interest) have been drilled to date having initial one-month production averaging 107 barrels of oil equivalent (boe) per day, with 76 per cent oil. Galleon said that the average cost to drill, complete and tie in each well is approximately $1.3 million. In the fourth quarter at the company’s North Peace River Arch business unit, Galleon successfully drilled one vertical
Montney natural gas well. In addition, two new Triassic oil projects were identified. An additional three horizontal wells were planned to be drilled in the first quarter to further prove up productivity from this new Montney oil fairway. One vertical well in the first Triassic oil project was recompleted in the fourth
The company plans to follow up with two horizontal wells in the current quarter. In the second Triassic oil project, Galleon said that after comprehensive geological and geophysical analysis, one vertical well test was planned in the first quarter. At its Kakut Montney project, Galleon said that new production and pressure data has confirmed the existence of two separate Montney pools. The southern pool is primarily natural gas whereas the northern pool has an oil leg. Recent production from the northern pool has seen a transition toward oil. Galleon has a plan to develop this oil resource during 2011. One well is currently on stream and three other standing wells are scheduled to be tied in and brought on stream late in the first quarter of 2011. Galleon said it plans to further maximize oil production in 2011 by drilling at least one Montney horizontal well in the oil portion of the pool. Producing predominantly oil from this pool will result in increased cash flow due to high crude oil prices. The company said its Kakut Doig gassy light oil project in Alberta continues to deliver economic wells. This Doig reservoir is defined by a large number of vertical control points. Galleon said it continues to accumulate data and
“Although it is still early in the development of this oil fairway, the potential of this oil play has been defined as significant.” — Galleon Energy Inc.
quarter of 2010 with what the company called “encouraging results.” “This recompletion, along with vertical well control and seismic, provides support for an emerging Triassic oil play. This play has considerable aerial extent and thick hydrocarbon charge,” Galleon said.
history within this project, and as such, continues to increase its understanding of the reservoir. “In addition, work is ongoing to determine the appropriate completion and drilling methods, with the goal of optimizing well productivity and cost efficiency,” the company said.
NORTHWESTERN ALBERTA/FOOTHILLS WELL ACTIVITY
JAN/10
JAN/11
WELL LICENCES
251
278
▲
JAN/10
JAN/11
WELLS SPUDDED
357
320
▼
JAN/10
JAN/11
WELLS DRILLED
316
262
▼
Source: Daily Oil Bulletin
OIL & GAS INQUIRER • MARCH 2011
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