Current Projects

Insch Commodities (Q2 2016)

WPM is currently reviewing Insch’s asset portfolio.  WPM’s mandate after the formal review will be to recover substantial LLR funds, raise its LMR to 2+, and optimize its operations in order that the ownership group will have marketable options for the asset.

 

Past Projects

Halkirk, Alberta ($19 Million Asset Value to $70 Million in 14 months)

WPM technically reviewed the geology and operations of its clients/partners $19MM property acquisition in Halkirk, Alberta in mid-2010.  WPM developed a program to optimize, and executed numerous workovers on suspended or low production wells and drilled a new horizontal leg on a re-entry (phase 1). The team prepared and shot a 3D seismic program to further exploit the play and to help develop a program for increased secondary recovery through utilization of a water flood. Once the planned water flood is implemented a reputable 3rd party engineering company had determined that the flood could equate to a doubling of the pools recoverable reserves. In phase 2, WPM drilled 2 new horizontal wells, three new horizontal re-entry legs and designed and completed a major pipeline/facilities upgrade on the property and identified many critical areas that required improvements that reduce overall operating costs through better handling of emulsion and water transportation and disposal. The upgrades to the facilities will also fully prepare the property for the proper water flood execution planned for late 2012 (phase 3).  WPM has taken this field from 35 BOEPD and an operating cost at $32 per BOE in early 2010 to 600 BOEPD and an operating cost at ~$11 per BOE in late November, 2011.  This equated to a $12,000 per barrel finding cost compared to average industry cost of around $25,000 per barrel.

Weyburn, Saskatchewan (37 BOE/d to 330 BOE/d or a value added of 21 Million in 6 months)

As with the Halkirk property, WPM also reviewed its clients/partners $20MM property acquisition in early 2011 in the Weyburn area.  WPM again developed a program to workover numerous wells that had been shut-in for years by the previous operator, and drill 12 new multi leg horizontal wells.  Workovers operations commenced in August 2011, drilling started in October and WPM has also begun its facilities upgrade on the property and identified multiple opportunities to reduce operating cost.  The majority of the wells required extensive surface land work and special government permission by both Provincial and Federal bodies due to the environmental sensitive area the project is located in, so planning both the drilling and pipelines/facilities required very close integrated planning.  As of February 2012, five new wells were drilled and seven wells worked over for an increase of approximately 300 BOPD to a mature field that was originally producing 37 BOPD. This equates to a finding and development cost under $33,000 per BOPD

Bashaw/Bassano/Stettler, Central Alberta (55 BOEPD to 80 BOEPD and increased CF by 50%)

Utilizing our internally developed economic model forecast our team recognized the opportunity with these properties and also realized that it was non-core to the owner. The Client purchased the properties at a 50% discount to the PDP value and with minimal capex increased the production by >25% and increase CF by 50%. After reviewing all well files and meeting with JV partners we successfully reduced operating cost from $37 BOE to <$25 BOE. Our team prepared an optimization and development drilling program(s) for the client based on production and reservoir engineering analysis and interpretation of 3D seismic. With the implementation we projected the production would more than triple to 250 BOEPD, with a projected cost of less than $5,000.00 per BOEPD. Note: End of 3rd quarter 2014 client sold these assets and realized a 186% return on their investment. (18 months). The purchaser implemented the development plan as prepared by our team and increased production to over 300 BOEPD.

Atlee Buffalo (300% ROI in 18 months)

Drilled single horizontal well, based on an old abandoned bypassed pay well, to develop a 12 API gravity field using 3D seismic interpretation. Drilled additional 8 horizontal wells and then sold to rationalize corporate assets, sale returned 300% on capital invested in less than 18 months.

Butte (abandonment liability to 225 BOE/d)

The property was an abandonment liability due to shut in wells. Based on our team recommendations the well was recompleted and made into a successful producer. This was followed up with 12 successful drills to develop a highly economical property. Property was retained as core asset and sold when company was divested.

Sturgeon Lake (70 BOE/d to 2000 BOE/d)

This field was originally discovered in 1964 by a major oil company. Over the years the property had become neglected after being sold off a number of times to various owners. When the property was acquired by our team the field was marginally economic and was producing approximately 70 BOEPD from two zones. Many in the industry believed a number of the zones our team was proposing to produce could not be successfully completed or produced economically. Using tight fiscal management, 3D seismic, proprietary completion techniques and optimizing operating procedures, seven zones were produced economically from multiple wellbores. The team had optimized the property by Exploration Drilling, Development Drilling, installation of pipelines, as well as upgrading water disposal facilities, production facilities and blending of crude to achieve better crude sales pricing. The property experienced a dramatic increase in recoverable reserves and a reduction in operating costs. Before the company was sold, peak production on the property had reached over 2,000 BOE/d from seven zones and there were still opportunities to exploit on the property.