January/February Reservoir 2025 by cegageos

REGISTRATION

Registration is now open for this year’s Core Conference, themed “Establishing Connections: The Interplay of Rocks, Energy, and People” and join engaging discussions on diverse plays, lithologies, and energy types within the geoscience community.

ABSTRACT SUBMISSION CLOSING SOON SPONSORSHIP OPPORTUNITIES

We invite you to participate in the 2025 CEGA Core Conference by submitting an abstract! The submission deadline is January 31, 2025.

Demonstrate your organization’s dedication to supporting the geoscience community and our economy by sponsoring the 2025 Core Conference.

Cretaceous Teeth, Texas.

Plesiosaur teeth

Cenomanian Boquillas

Photo by: Bruce Hart.

FROM THE EDITOR

SARAH SCHULTZ , TECHNICAL EDITOR FOR THE RESERVOIR

WELCOME...

to our January and February issue of the CEGA Reservoir!

The CEGA Core Conference committee is now accepting abstracts for the 2025 conference taking place on May 8-9, 2025 at the Core Research Centre. Please check out the Core Conference website to submit an abstract or to get more information regarding this event. Registration for the conference is now open. The deadline to submit an abstract is January 31, 2025.

In this issue we present the continuation of our regular articles:

• From the Desk of the AER: Summer of 2024 Highlights from the Alberta Geological Survey

• The Blue View: Industry Trends Through Woodmac’s Lens

In this issue we present the following articles:

•Greg Baniak, Elizabeth Watt and J.P. Zonneveld: The 2024 Gussow Conference

•Markus Ebner: Welcome to the 2025 CEGA Calendar!

In this issue we showcase the following:

• 2025 Message from the Board

• Dinotour 2025 Southern Alberta

Congratulations to the following award recipients:

• Honorary Member Award: Dr. Benoit Beauchamp

• Honorary Member Award: Kaush Rakhit

To sign up for our upcoming 2025 technical luncheon and division talks please visit the CEGA website.

We look forward to receiving your manuscripts for the upcoming 2025 issues of the CEGA Reservoir.

Sarah Schultz

PUBLICATIONS INFORMATION

The RESERVOIR is published 6 times per year by the Canadian Energy Geoscience Association. The purpose of the RESERVOIR is to publicize the Association’s many activities and to promote the geosciences. We look for both technical and non-technical material to publish.

The contents of this publication may not be reproduced either in part or in full without the consent of the publisher.

No official endorsement or sponsorship by the CEGA is implied

for any advertisement, insert, or article that appears in the RESERVOIR unless otherwise noted. All submitted materials are reviewed by the editor. We reserve the right to edit all submissions, including letters to the Editor. Submissions must include your name, address, and membership number (if applicable). The material contained in this publication is intended for informational use only.

While reasonable care has been taken, authors and the CEGA make no guarantees that any of the equations, schematics, or

devices discussed will perform as expected or that they will give the desired results. Some information contained herein may be inaccurate or may vary from standard measurements. The CEGA expressly disclaims any and all liability for the acts, omissions, or conduct of any third-party user of information contained in this publication. Under no circumstances shall the CEGA and its officers, directors, employees, and agents be liable for any injury, loss, damage, or expense arising in any manner whatsoever from the acts, omissions, or conduct of any third-party user.

BOARD OF DIRECTORS 2025

PRESIDENT

Shelley Leggitt

Kiwetinohk Energy Corp. shelley.leggitt@cegageos.ca LinkedIn

FINANCE DIRECTOR ELECT

David Lipinski

AtkinsRealis directorfinanceelect@cegageos.ca LinkedIn

DIRECTOR

Michael Livingstone GLJ Ltd technicaldivisions@cegageos.ca LinkedIn

CEGA OFFICE

#415, 500 4th Ave SW

Calgary Alberta, Canada T2P 2V6

Tel: 403-264-5610 | cegageos.ca

PAST PRESIDENT

Andrew Vogan

ConocoPhillips Canada Ltd. andrew.vogan@cegageos.ca LinkedIn

DIRECTOR

Gary Bugden

Cabra Consulting Ltd membershipdirector@cegageos.ca Linkedin

DIRECTOR

Michael Wamsteeker

ExxonMobil publications@cegageos.ca Linkedin

PRESIDENT ELECT

Christa Williams

Kiwetinohk Energy Corp. presidentelect@cegageos.ca

DIRECTOR

Ryan Lemiski outreach@cegageos.ca

DIRECTOR

Kevin Webb

Aquataine Energy Ltd. conferences@cegageos.ca LinkedIn

FINANCE DIRECTOR

Rachel Lea

Suncor Energy directorfinance@cegageos.ca

DIRECTOR

Scott Leroux

Taggart Oil Corp. education@cegageos.ca Linkedin

OFFICE CONTACTS

MEMBERSHIP INQUIRIES

Tel: 403-264-5610

Email: membership@cegageos.ca

ADVERTISING INQUIRIES

Britney Tang

Tel: 403-513-1230

Email: britney.tang@cegageos.ca

CONFERENCE INQUIRIES

Kristy Casebeer

Tel: 403-513-1234

Email: kristy.casebeer@cegageos.ca

MANAGING DIRECTOR

Emma MacPherson

Tel: 403-513-1235

Email: emma.macpherson@cegageos.ca

2025 MESSAGE FROM THE BOARD

SHELLEY LEGGITT, 2025 CEGA PRESIDENT

WWhy Be a Member of CEGA?

hen I ask myself this question, two key benefits immediately come to mind: technical idea generation and networking. In fact, nearly every component of our programming falls within these two categories.

CEGA is our association, our community of likeminded scientists. We share a passion for earth science, discovery, and learning. Our industry has undergone significant changes in how we explore and develop hydrocarbons, care for the environment, and are perceived by society. Change is constant, and as geoscientists, we strive to adapt and evolve alongside these shifts.

CEGA offers its members unparalleled opportunities for technical growth, professional networking, and participation in a vibrant, supportive community of geoscientists. It remains a vital platform for advancing careers and contributing to the industry's evolution.

The mandate, as I start my term as president, is to focus on two key pillars: Membership and Outreach. These pillars are vital because the strength of our association relies on geoscientists’ desire to join as members and on robust outreach initiatives to foster the next generation of geoscientists.

To grow and strengthen our membership, we need to attract aspiring geoscientists by offering opportunities to gain technical knowledge, present and test ideas, develop leadership skills, and network with peers and industry leaders. Outreach efforts, in particular, focus on geoscience students and young professionals. How do we attract and retain top talent in our industry? Examples of Outreach initiatives include collaborations with other societies on Ambassador Programs, hosting social events, sponsoring career fairs, and targeting educational offerings to summer students and new graduates.

The strength of CEGA lies in its service to members. Technical learning, the core of our association, is delivered through timely, relevant, and innovative content such as publications, technical luncheons, division talks, conferences, courses, and field trips. Annual events like GeoConvention and the Core Conference exemplify how we provide technical upgrades.

However, this isn’t without challenges. Many leading experts and course instructors are retiring, mid-career specialists are too busy with work demands, and younger staff—who need the training—often face similar challenges or lack encouragement from leadership to enroll in

courses or share their learnings. As an association, how can we reinvigorate our technical strengths?

Participation, encouragement, planning, and marketing are essential. We need industry leaders to support and promote training, plan offerings that meet members’ needs, and bring innovative ideas to life to share with our peers.

Networking is another vital aspect of CEGA. You may not think you need it—until you really do. Imagine you’re a new graduate or student looking to build connections for your first job. Or perhaps you’re mid-career and want to explore a new role, or you’ve recently experienced a job loss and are seeking advice or opportunities. CEGA is your Networking Hub.

I recall my first networking experience with CEGA as a volunteer on the Thesis Review Committee in the mid-1990s. The connections I made were instrumental in helping me transition from government-related research to the downtown oil and gas industry in the late ’90s. CEGA offers a variety of volunteer roles, and I encourage you to find the one that fits you best. Explore opportunities on our website, fill out the volunteer form, or speak with staff or directors who can guide you.

Finally, while we are broadening our reach to include energy-related industries, our core membership remains oil and gas geoscientists. It’s crucial to keep this base strong and relevant. Recently, we’ve seen a focus on topics like CCUS (Carbon Capture, Utilization, and Storage) and emerging resources. However, we also need more technical content for key plays. We encourage industry leaders to motivate staff to share insights and present their learnings to our community—essential steps for advancing the business of producing hydrocarbons more efficiently and economically.

CEGA traces its roots back to the Alberta Society of Petroleum Geologists (ASPG), formed in 1927, which later evolved into the CSPG. The association was formed for geologists to compare notes and swap data, a liberal exchange of results from exploration and geological data was advisable and helpful to all parties concerned (John Allan, 1927). Let’s continue that legacy and stand on the shoulders of those that came before us.

GUSSOW 2024 MONTNEY SUBSURFACE EVALUATION: DRIVE TOWARDS EXCELLENCE

Greg Baniak (PETRONAS Canada), Elizabeth Watt (ConocoPhillips Canada), and John-Paul Zonneveld (University of Alberta) 2024 GUSSOW Montney Conference Co-Chairs

The 2024 Gussow conference was held on October 2nd to 4th in Banff, Alberta, Canada and focused on the world-class Triassic Montney Formation. The theme “Drive Towards Excellence” centered around showcasing cutting edge geoscience technical work being undertaken to optimize fluid recovery and landing zone selection. Collectively, an exceptional list of 29 technical presentations covering a wide range of topics was showcased to the attendees. Topics of discussion included Stratigraphy and Sedimentation, Rock Properties, Structure and Geomechanics, Organic and Inorganic Geochemistry, and a series of integrated Case Studies. With over 140 delegates, attendance participation during the three-day event was very strong and benefited from industry, academia, and government contributions. The theme of the conference highlighted the complex nature of the Montney play along with the area-by-area variations and the wide breath of complexities seen across the large present-day fairway. The end of the three-day conference culminated in a lively panel discussion on the future of Montney unconventionals from a pricing, policy, and career viewpoint.

The conference was ultimately very successful due to the strong support from numerous sponsors, CEGA volunteers, and session chair participation. We would like to thank the technical session sponsors McDaniel & Associates, SeisPetro, AGAT Laboratories, and ConocoPhillips Canada for their support. ShearFRAC and

Ikon Science are acknowledged and thanked for sponsoring the coffee breaks. Many thanks to PETRONAS Canada and APEGA for sponsoring the networking sessions at the end of Days 1 and 2, of which both days were well attended and provided an excellent avenue for casual debate and discussion. Finally, a big thank you to CEGA for their continued support in this conference. Specifically, a large thanks to Kevin Webb, Kristy Casebeer, and the staff at the CEGA office for helping organize this event logistically and organizing all the behind-the-scenes logistics during the stay in Banff.

The session chairs were Omid Ardakani (Geological Survey of Canada), Matt Adams (ShearFRAC), Jaime Cesar (AGAT Laboratories), Christopher Clarkson (University of Calgary), Tristan Euzen (IFP Technologies), Carolyn Furlong (MacEwan University), Harald Huebscher (Shell Canada), Rick Schroeder (ConocoPhillips Canada), Danielle Thomson (Strathcona Resources Ltd.), and James Wood (Calaber 1 Resources). Each of these individuals worked collaboratively and tirelessly to gather and organize talks that shared insights, presented new ideas, and ultimately generated considerable discussion and debate. A final thanks to the panel session moderator Mike Davies (Turing Analytics) and panelists Mark Quesada (Rystad Energy), Chelsie Klassen (HATCH), Andy Vogan (ConocoPhillips Canada), and Tyler Schlosser (McDaniel & Associates) for their participation and lively responses to attendee questions.

From the Desk of the AER Summer of 2024 Highlights from the Alberta Geological Survey

ALEX MACNEIL, ALLISON RUBIN, NIGEL ATKINSON, AND ERIC MORLEY

The Alberta Geological Survey conducts a wide range of field activities every year in Alberta and sometimes even in other jurisdictions. The summer of 2024 included several mapping and sampling programs and presented below are some of the highlights. We were able to include some summer students on some of these programs and concluded the summer without any safety incidents.

Devonian Analogue

Investigation

For the last few summers, the Alberta Geological Survey has been revisiting classic Devonian reef margins in the Front Ranges. The purpose of this work has been to build public datasets that can be used for a range of activities including the construction of better geologic models of time-equivalent, data-limited, strata in Alberta’s subsurface. Known as the Devonian Analogue Investigation and underpinned by the use of an advanced drone capable of long flight missions and equipped with a high-resolution camera, we conducted field work in several areas in July and August. We revisited Cripple Creek and Hummingbird, and new sections were measured at another location southeast of Hummingbird. We also collected our first imagery for Wapiabi Gap and had the pleasure

of being joined by Pak Wong for a day to examine this excellent locality. Pak has worked this location for several years. With up to eight people in camp at one point, our camp at the Hummingbird Recreation Area was quite pleasant and only smoky on the last two days. From the safety of the lunch margin at Cripple Creek, we witnessed a forest fire southwest of Nordegg grow from minor to significant and the initial attack Bird-dog planes circling overhead.

In addition to work in the Nordegg region, we worked in the Front Ranges west of Sundre near Panther River and a couple of localities at Burnt Timber (Figure 1). At Burnt Timber we measured some sections through impressive fore-reef debris aprons. If anyone lost their

View of the Burnt Timber margin (Leduc Formation, ~70 m thick) and off-reef deposits.

FIGURE 1

geological clipboard at Burnt Timber forty years ago, we found it. In the Kananaskis Region, we revisited Orient Peak where we had measured a section in 2022, and visited several additional areas for reconnaissance work. John Weissenberger joined us for some of this time and showed us the hydrothermal dolomite breccia pipe that intrudes the Wabamun (Palliser) Formation near Canmore. This was particularly interesting as our minerals team has been studying similar features in the Crowsnest Pass area (see below). The drone imagery we collect is processed into 3D digital outcrop models and if you are familiar with Grassi Lakes, stay-tuned for the digital outcrop model that will be available for this region in 2025. It will add a whole new dimension to how you see the deposits at this famous locality.

Alberta-Northwest Territories Transboundary Aquifer Project

The AB-NWT Transboundary Aquifer Project is in collaboration with the Government of Northwest Territories and the Government of Alberta to complete transboundary groundwater research in the South Slave region. Our study area spans the main watersheds across the provincial-territorial border with a focus on the lower Hay River sub-basin including regional landforms of interest such as the Cameron Hills and Caribou Mountains (Figure 2).

The project team completed reconnaissance-scale fieldwork in the study area in June to view geological landforms, investigate the sediment above bedrock, and ground-truth our geological mapping. Our field sites spanned the South Slave region and displayed the geological variety in the area, including areas with little sediment thickness to the west (Figure 3a), potential buried channel sediment in the Hay River valley (Figure 3b), and unexpected sandiness to the east (Figure 3c).

Aside from the geological field sites, the trip also included many scenic views of the Northwest Territories, such as Lady Evelyn Falls (Figure 4a), and an abundance of wildlife (Figure 4b). The project team plans to revisit the area in spring 2025 to conduct a helicopter survey in the Cameron Hills, Caribou Mountains, and along the Hay River valley to identify springs and further investigate the surficial sediment.

Geological sites in the South Slave region, including (a) bedrock to surface, (b) buried channel sediment in the Hay River valley, and (c) sand dunes near Fort Smith.

AB-NWT Transboundary Aquifer Project study area.

Scenic views in the South Slave region, including (a) Lady Evelyn Falls and (b) a black bear along Highway 5.

FIGURE 2

FIGURE 3

FIGURE 4

Glacial Geomorphology

Field Trip

In August, staff from AGS co-led a field trip of Canadian and international Quaternary geologists as part of the Canadian Quaternary Association conference through southern Alberta and Saskatchewan, focusing on the glacial geomorphology of the former bed and receding margins of the southwest Laurentide Ice Sheet (Figure 5). Major themes included ice sheet reconstructions, and the sedimentology and stratigraphy of accompanying glaciogenic deposits, the genesis and morphology of ice marginal landforms, ranging from large scale glaciotectonic structures in soft bedrock to push moraine and hummocky moraine and intervening glaciofluvial deposits, and the engineering geology properties of these deposits and structures to better understand their influence on ground conditions associated with major infrastructure developments.

Two geologists examining galena-rich deposits in brecciated carbonates at the Oldman Occurrence.

Southwest Alberta Minerals Field Work

In August, a team from the AGS investigated mineral systems in southwestern Alberta as part of the AER’s Mineral Mapping Program. The primary objectives of this work were to: review known carbonate-hosted base- and precious metal mineral occurrences (e.g., the Oldman occurrence Figure 6), search for additional carbonate-hosted mineral occurrences within Paleozoic strata using available geoscience data and historic reports, and investigate stream sediment geochemical anomalies across Mesozoic sequences from suspected metalliferous black shales. This work differs from previous AGS activity in the area by focusing on the characterization of known mineralization and the search for analogous occurrences.

Field work was completed over a period of two weeks and was based out of the town of Coleman. A variety of samples were collected for supplementary analysis, including Paleozoic carbonates, PaleozoicMesozoic shales, and stream sediment samples upstream from previously identified anomalies. Next steps for this project will include geochemical analysis, petrographic descriptions, and geochronology where appropriate. After results are received, a report of our findings will be drafted and all data will be made publicly available.

Section exposed at Bain Bluff along the South Saskatchewan River, east of Medicine Hat

FIGURE 5

FIGURE 6

HONORARY MEMBER AWARD

Dr. Benoit Beauchamp

Dr. Benoit Beauchamp is an ideal recipient for Honorary Membership in the Canadian Energy Geoscience Association, based on his numerous scientific contributions to Canadian Arctic geology, his outstanding career as an earth science professor, and his numerous contributions to the CSPG (now CEGA). Dr. Benoit Beauchamp is recognized as a brilliant communicator and promoter of the geosciences and resource development in the far North. His extensive contributions to Canadian geosciences sit solely at the interface between sedimentary geology, tectonics and hydrocarbon resources.

Dr. Beauchamp is one of the world’s most knowledgeable Carboniferous-Permian reef experts. His many contributions on various buildups, their biota and processes—often associated with coeval tectonic activity and fault development—have helped advance our understanding on many of the structures imaged seismically in the Barent’s Sea (Norway) and the Timan-Pechora Basin (Russia), where they constitute targets for oil and gas. As a renowned carbonate expert, Dr. Beauchamp has been at the forefront of cutting-edge key developments in this field. He has produced benchmark contributions in the areas of reef development, methane seep carbonates, cool water carbonates and biosiliceous sedimentation, which are now considered the cornerstones of entire new fields of investigation.

Dr. Beauchamp’s rich, multi-faceted and innovative contributions encompass all tectonic-stratigraphic aspects of basins analysis in the Arctic. He has produced comprehensive bulletins, papers and maps that shed light into the tectonic evolution and origin of subsidence, during the early development of the Sverdrup Basin. His work demonstrated a close link between tectonic pulses and development of stratigraphic sequences.

Dr. Beauchamp has advanced the concept of basin analysis globally, examining far field influences on sedimentary basins, with strong insights into Earth system’s causes for tectonic, paleogeographic, oceanographic, climatic, biotic and compositional shifts. He has contributed to a better understanding of the Sverdrup Basin’s petroleum system, addressing various aspects of petroleum geology in the Arctic, including the Norwegian Barents Sea.

At the University of Calgary, and previously at the Geological Survey of Canada, Dr. Beauchamp has trained and mentored a whole new generation of well-rounded geologists. This includes dozens of graduate students in the art of comprehensive basin analysis and in the fundamentals of geology, guiding them through field-based projects in the Arctic. Together with his students and colleagues, he has shown that major shifts in the earth system can be linked to seemingly abrupt shifts in global tectonics, including plate reorganization and associated volcanic events. Dr. Beauchamp is a champion of promoting inclusion and gender diversity, particularly in hiring women for field work and for graduate research, beginning at the Geological Survey of Canada, and at the University of Calgary.

As a skilled organizer, Dr. Beauchamp has organized some of the most successful scientific conferences in western Canada, including conferences for the CSPG (CEGA), catering to diverse audiences at the interface between sedimentation, tectonics, and energy resources. He is one of Canada’s most prolific communicators, both on a national and international level, promoting geoscience and resources development in the far north, often as a keynote speaker. While at the Arctic Institute of North America, in his role as Executive Director, he was an unwavering promoter of sound and responsible hydrocarbon development in Arctic Basins. This work was carried out relentlessly in consultation with industrial, territorial, federal and aboriginal stakeholders.

Mentoring @ CEGA UPDATE

For the last year, Mentoring365 has been the key platform for advancing mentorship at CEGA. The purpose of Mentoring365 is to advance the Earth and Space Science community by connecting participants through one-to-one and group connections. It is supported by 16 partner organizations. Currently 56 CEGA members are enrolled in Mentoring365, which is encouraging.

One of the key recent initiatives of the CEGA Mentoring Committee in engaging with Mentoring365 has been the co-sponsoring of an online

discussion group, referred to as a “Circle”, entitled “How To Be An Effective Mentee”. The other sponsoring organizations were the Association of Women Geoscientists (AWG) and the Geological Society of America (GSA).

The Circle saw good participation, from across the organizations affiliated with Mentoring365. Main elements included three Zoom presentations, online postings on the Circle discussion board, and a variety of resources uploaded by presenters and discussion participants.

The presentations were entitled:

“ The advantages of being in a mentoring relationship”

“How to find and seek mentors”

“How to get the most out of your mentoring relationships”

Even though the Circle is closed, the presentations and the accompanying slides, as well all the postings on the Discussion Board, and other resources, are still available on the Circle site. CEGA members are encouraged to access these resources by accessing the Mentoring365 Circles page.

Welcome to the 2025 CEGA Calendar!

MARKUS EBNER

THIS YEAR’S CALENDAR IS SURE TO IMPRESS, WITH BEAUTIFUL IMAGES FROM ALL CORNERS OF THE WORLD.

Close to home, the cover photo by Steve Parkins, gives us a beautiful structural panoramic image of the internal deformation within the McConnell Thrust sheet. Only a hop, skip and a jump away, John Cody offers a unique perspective of the Milky Way over Moraine Lake in the month of July. On a smaller scale, Jerry Osborn gives us a beautiful aerial view of the Keystone Thrust in Nevada. Celeste Cunningham won Best Subcategory photo of conglomerates, with her shot from the Caribou Mountains in BC.

The 2025 calendar showcases an eclectic assortment of photographs. Without all our dedicated members taking the time to submit them, we would not be able to continue to produce a calendar of this caliber. A total of 91 photo submissions were received this year -- we appreciate all the time the entrants took to compile and describe their entries.

We would like to acknowledge and thank our generous sponsors who help make this calendar project possible year after year. Our Production Coordinator, Britney Tang, is thanked for making sure everything is where it needs to be on time. Clint Tippett is thanked for his dedicated hours judging and editing and for geological accuracy.

We hope you enjoy your 2025 CEGA Geological Calendar and wish you an adventurous year ahead.

DINOTOUR 2025

Southern Alberta

Have you ever dreamed of exploring and discovering a dinosaur fossil with some of the world’s greatest dinosaur hunters?

This is your opportunity to register for Dinotour 2025

Southern Alberta to be held July 4 to July 7th, 2025 inclusive.

During this four-day familyoriented event you will:

• Learn about the dinosaurs of southern Alberta from world-renowned scientists

Dr. Philip Currie, Dr. Eva Koppelhus and Dr. Caleb Brown and your tour coordinator Mona Trick

• Tour the Royal Tyrrell Museum gallery and the labs and backrooms

• Hike to “Dinosite”

• Hike to the Albertosaurus dinosaur quarry in Dry Island Provincial Park

• Explore Dinosaur Provincial Park with hikes and a bus tour

TOUR INCLUDES:

• Guided tour including bus transportation to and from Calgary, Alberta

• 3 nights accommodation (double occupancy)

• All meals over the 4 days of the tour

• Admission to the activities at the Royal Tyrrell Museum of Palaeontology and Dinosaur Provincial Park

• Guidebook and T-shirt

• Canadian charitable tax donation receipt for a significant portion of the fees

Cost of tour: CDN $2,495.00 per person (double occupancy).

Minimum age: 14 years old as of July 4, 2025

OPTIONAL EXTRAS:

Single supplement: CDN $328.80

Calgary hotel room July 3: CDN $216.91

Calgary hotel room July 7: CDN $216.91

Click here for registration form

Your spot will be reserved once we receive your deposit of $500 CDN for each person (by cheque, money order, Visa or MasterCard credit card or INTERAC e-transfer to info@dinosaurresearch.com). The balance of the tour cost and signed waiver form is due by May 31, 2025. Dinotour 2025 is limited to only 24 participants, only 12 spots are still available

PROCEEDS GENERATED FROM THIS TOUR SUPPORT THE WORK OF THE DINOSAUR RESEARCH INSTITUTE, A NON-PROFIT CHARITABLE ORGANIZATION THAT FINANCES WESTERN CANADIAN DINOSAUR RESEARCH.

MONA TRICK

RTMP LAB PHOTO BY MONA TRICK

Hike in Dinosaur Provincial Park. Photo by Mona Trick

2025 UPCOMING EVENTS INFORMATION

JANUARY

January 28th In Person only

11:30 am -1:00 pm MST

Technical Luncheon

Pit wall and core expressions of intra-point bar erosional surfaces in McMurray Formation point bars, Fort Hills Mine, Alberta, Canada

Speaker: Dan Bzdziuch, Suncor Energy

Location: Calgary Petroleum Club Devonian Ballroom 319 5 Ave SW, Calgary, AB T2P 0L5

FEBRUARY

February 12th In Person only

12:00-1:00 pm MST

International Technical Division

Canadian Oil and Gas Companies – Past and Present – Investing in International Exploration and Production: Assets, Strategies, Stock Market Performance

Speaker: Tako Koning

Location: New CEGA Classroom, 500 4 Ave SW, +15 level, Calgary, AB

February 25th In Person only

11:30 am -1:00 pm MST

Technical Luncheon

The Geology of Carbon Capture and Storage

Projects: The Carbon-Sequestration Geosystems Paradigm with an Application to Southern Ontario

Speaker: Dr. Bruce Hart

Location: Calgary Petroleum Club Devonian Ballroom 319 5 Ave SW, Calgary, AB T2P 0L5

VISIT

MARCH

March 6th-8th

40th Annual Squash Tournament

Location: The Bow Valley Club 250 6 Avenue SW, Calgary, AB T2P 3H7

APRIL

April 3rd-5th

1st Annual CEGA Geospiel

Location: North Hill Community Curling Club 1201 2 St NW, Calgary, AB T2M 2V7

The Blue View: Industry Trends Through Woodmac’s Lens

NORTH AMERICA IN CONTEXT: OVERARCHING THEMES ACROSS THE INDUSTRY

1.

Canada upstream: Federal oil and gas emissions cap progresses to draft legislation

CANADA UPSTREAM

2.

US Lower 48 upstream: Ovintiv’s Uinta sale helps fund Montney scale

n Federal oil and gas emissions cap progresses to draft legislation

The Canadian government has made an additional step in introducing new emissions regulations for the oil and gas sector, with the stated goal of reducing greenhouse gas emissions while maintaining the industry's long-term competitiveness.

The Oil and Gas Greenhouse Gas Pollution Cap has moved from policy framework stage in December 2023 to a legislation draft. The proposed policy would set a sector-wide emissions cap on upstream emissions at 27% below 2026 reported levels. The government's baseline scenario estimates the 2026 emissions to be 156.6 Mt, resulting in a modelled emissions cap of 114 Mt. This aligns with earlier stated goals of achieving a 35% sector reduction from 2019 levels, largely enabled through methane reductions and oil sands emissions cuts.

2026 will be the pivotal year as that will now begin to set the capand-trade amount to be used in determining emittance obligations in 2030-2032. Emissions allowances will be distributed based on operation subsector type and 2019 emissions intensity within that subset. Allowances, decarbonization units and Canadian offset credits will be used to comply with the emissions compliance obligations. Importantly, electricity cogeneration emissions will be excluded.

Regulations will be finalised in 2025 and come into effect in 2026, with the first reporting period in 2030. There is another public comment period running through 8 January 2025; the draft regulations could still be changed.

For large oil sands and unconventional producers, compliance costs can be mitigated by leveraging efficiencies of scale and integration. Over the past decade, these firms have expanded substantially, in some cases doubling or tripling through acquisitions. However, the unintended consequences of the legislation are likely to fall on over 270 small to medium-sized producers, who will face increased trading and regulatory complexity. This could further consolidate the sector, limiting innovation and reducing employment opportunities.

Adding another compliance layer may satisfy public calls for stricter emissions regulation, especially in light of large producers’ recent focus on shareholder returns over reinvestment in decarbonization. However, for smaller firms, the financial strain risks stifling entrepreneurial activities, particularly in high-risk exploration plays and new drilling in Western Canada. This comes at a time when Canada is already struggling to attract foreign direct investment due to its high regulatory burdens and uncertainty.

3.

US Lower 48 upstream: How long will efficiencies continue sustaining US growth?

Ultimately, while the legislation positions Canada’s oil and gas sector to act as a low-emissions supplier to global markets, its success hinges on overcoming political and regulatory hurdles. Without addressing the broader context of policy uncertainty and economic feasibility, the emissions cap risks unintended consequences that could hinder Canada’s energy transition goals.

US LOWER 48 UPSTREAM

n Ovintiv’s Uinta sale helps fund Montney scale Ovintiv (OVV) has announced a US$2.4 billion (Cdn$3.3 billion) acquisition for several Alberta Montney assets from Paramount Resources. The company will finance this all-cash transaction primarily by selling its Uinta assets to privately held FourPoint Resources for US$2.0 billion. The deal is expected to close in the first quarter of 2025.

The Canadian assets include 109,000 net acres of Montney rights and 67,600 boe/d (50% liquids) as of Q3. OVV estimates 600 tier-one remaining locations, split between the Upper and Middle Montney zones, with 300 prospective locations in the Lower Montney.

In the Uinta, OVV holds 137,000 mostly contiguous acres in Duchesne and Uintah counties in Utah, producing 29,000 bbl/d of liquids. The company has marketed it as 80% undeveloped and has kept one rig running on the assets through 2024. In OVV's Q2 results, the company highlighted 10 years of inventory, implying 250 and 300 remaining PUD locations at its 2024 development pace. OVV was primarily targeting three benches but is actively testing upside horizons. Recall that SM disclosed over 10 Uinta benches in its recent XCL purchase.

Effectively trading the Uinta for Montney assets makes strategic sense for OVV. A&D rumors pointed towards a possible OVV bid for Double Eagle IV, a significant Permian private player near the large-cap's position in the Midland Basin. High synergy-potential Permian assets are some of the most valuable assets in North American A&D, helping explain why the company may have opted to pursue cheaper liquids-rich Montney assets instead.

Why Paramount? There's sound logic to acquiring more liquids-rich Montney acreage, especially given the recent volatility in Canadian gas prices. Paramount assets have solid-performing wells and desirable liquids cut. However, the assets are not adjacent to OVV's Pipestone asset, and operational tie-ins are unrealistic due to the distance. The realization of any synergies here will be minimal.

Alberta Montney well rates by spud year The cost of US$34,000 per flowing boe is slightly below the average of US$36,900 per flowing boe of recent comparable deals. However, the limited number of transactions

involving liquids-rich Alberta assets means that the deal is significantly higher than the Montney average on a dollar-per-acre basis. It is in line with Veren's acquisition of Hammerhead Energy, and the activity in the area has resulted in multiple benches being derisked.

Why divest the Uinta? Ovintiv is refreshing its portfolio to balance investor confidence with diversification. Exiting the Uinta to acquire a strong position in an existing operating area lends to a story of simplification. The market was generally supportive of the move too. Shares increased 5.5% by adding liquids-weighted growth assets in a more established play without incurring significant debt. Ovintiv's Q3-end net debt/book capital was 35%, completing the Montney deal without the Uinta sale would have moved gearing to an uncomfortable 44%.

Could this even signal a move towards an eventual Coterra or Expand business model, with a focus limited to two plays? Ultimately, divesting the Mid-Con assets wouldn't surprise us.

SCOTT NORLIN, GIT

Research Analyst, Upstream Canada

Scott joined the Canadian Upstream Research team at Wood Mackenzie in June 2019. He is responsible for providing financial asset valuation and objective commercial analysis on company and play activity across Canada. His coverage ranges from North American large caps to junior private producers. He also covers CNRL and Cenovus for the corporate analysis team, providing high level company valuation and strategy analysis.

How long will efficiencies continue sustaining US growth?

Our updated long-term outlook for US Lower 48 oil production has been released. By the end of the decade, we expect an additional 1.1 million b/d of growth, with output peaking in 2030 at just over 12 million b/d. To put this into context, the cumulative growth over the next five years, is marginally greater than what the US Lower 48 added last year alone.

Growth is projected to average only about 300,000 b/d over the next three years, compared to over 600,000 b/d from 2022-2024. After 2030, moderate production declines are anticipated with overall volumes shrinking nearly 1.9 million b/d from 2030 to 2040. However, over the next decade, the Permian will remain the epicenter of growth, accounting for an estimated two-thirds of Lower 48 oil production by 2031 at 7.7 million b/d.

Continued efficiency gains, including enhanced well productivity and cost reductions, will help sustain US production levels even as growth slows. Significant oil price increases, above $110/bbl, could spur a material upside, potentially lifting output to around 14 million b/d by 2030. Conversely, prolonged low prices below $50 per barrel could trigger immediate declines across most tight oil regions.

While the downside risk appears more limited, what factors could disrupt the current outlook and lead to an upside surprise in US oil supply? And how would a muted growth trajectory impact the global oil market balance in the coming decades? Reach out for more details and the full report.

XIN YI

Research Associate, Canadian Upstream Research

Xin's responsibilities include financial asset valuation and emissions modelling for Canadian and Alaskan assets. She also contributes to corporate analysis for Canadian and international mid caps and large caps such as Tourmaline Oil and Chevron.

DISCLAIMER – THE VIEWS AND OPINIONS STATED BELOW ARE BASED ON WOOD MACKENZIE’S DATA, SOURCED FROM PUBLIC SOURCES ACROSS THE GLOBE AND OUR PROPRIETARY TOOLS SUCH AS LENS.

HONORARY MEMBER AWARD

Kaush Rakhit

Kaush Rakhit is hydrodynamic specialist, innovator, and entrepreneur with notable technical influence on oil and gas development in the Western Canadian Sedimentary Basin. Kaush earned his B.Sc. in Earth Sciences from the University of Waterloo in 1983 and was the first person to earn a postgraduate degree (M.Sc.) in Petroleum Hydrogeology from the University of Alberta in 1987.

After travelling for several years, in 1990, Kaush founded Rakhit Petroleum Consulting Ltd. (RPCL) RPCL specialized in hydrodynamics, basin modeling and integrated geoscientific studies in North and South America, Europe, and Africa. RPCL’s unique specialization was to integrate subsurface fluid flow and formation fluid chemistry trends with rigorous geological analysis of the hydrocarbon reservoir. Kaush created critically important databases still utilized by many CEGA members to this day. In 1991, Rakhit Petroleum Consulting Ltd. launched GeoFluids™, the “Fluid Analysis” database of over 750,000 oil, gas, and water analyses. This product was widely utilized through user licence agreements and data providers. It was subsequently purchased by Accumap in 2004. This data is as relevant today as during the heyday of conventional exploration and has been critical for initiating aquifer characterization for Carbon Capture Storage (CCS) and critical mineral exploration.

In 2004, Rakhit Petroleum Consulting Ltd. purchased and merged with Canadian Discovery Ltd. (CDL) Under Kaush’s leadership, Canadian Discovery Ltd. grew to be one of the largest data and analytics providers for Western Canada and the North Sea. Since the 1990’s CDL has produced thousands of technical articles and hundreds of geoscience studies and consulting projects. CDL’s studies and knowledge were instrumental in the early recognition of unconventional plays,

including shallow gas, CBM, Deep Basin, Bakken, Montney and Duvernay. Using integrated hydrodynamic analysis as a cornerstone, Kaush led the CDL team and the industry, to position and exploit some of the most valuable unconventional development opportunities.

In 2010, Canadian Discovery Ltd. launched the Well Completions and Frac Database (WCFD), which became the industry standard Frac database. This database is used extensively by upstream producers and researchers looking to optimize their frac programs, study competitor techniques, and conduct detailed analytics. The Frac database was later purchased by Geologic Systems in 2017.

One of the lasting legacy’s Kaush helped develop was a series of regional Atlases. These atlases include the Hydrogeologic Atlas of Western Canada, Hydrogeologic Atlas of the Williston Basin, Hydrocarbon Chemistry Atlas of Western Canada, Light Oil and Liquids Fairway Atlas, and Stress Analysis of Central Alberta. More recently he helped with the Lithium Data Base for Northeast BC, CCS Potential for Basal Cambrian in Alberta, and CCS Potential for Eastern and Atlantic Canada (in progress).

While there have been many significant milestones throughout his career, Kaush’s proudest achievements lie in the impact he has had on the next generation of geoscientists. Kaush’s influence has seen hundreds of people graduate through the doors of Rakhit Petroleum Consulting Ltd. and Canadian Discovery Ltd.; on their way to become valuable contributors to the exploration and production industry.

A serial entrepreneur, Kaush co-founded Groundwater Solutions (now Matrix Solutions) in 1993, a 500+ person organization, that was recently sold to Montrose Environmental. Through the 1990’s and beyond, Kaush co-founded and directed Saskatchewan focused junior Kinwest Energy, and its second and third re-incarnation, Race Rock Resources, Coda Petroleum, and the technology company Petrofeed (now Plankk Media). Kaush also sat on the advisory board of Azimuth and Northbridge Capital Partners, both energy focused private equity firms. Most notably, Kaush was a founding investor and long-term director of Seven Generations Energy and subsequently Kiwetinohk Energy.

Kaush has been an active speaker at conferences, authored technical papers, and was an active member of APEGA, as a professional geologist. He holds an ICD.D designation. Now semi-retired, his focus is on developing transitional energy projects, including solar, carbon sequestration, and municipal waste to renewable natural gas.