Halkirk, Alberta

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.