HUSKY HZ RAINBOW 13-13-110-7
PRODUCTION - NPW (C)
Well ID: 00/13-13-110-07W6/0
Fluid: CRUDE OIL
Licensee: HUSKY OIL OPERATIONS LIMITED
License Date: 27-Feb-2012
Projected Depth: 3,592.0 m
Field: RAINBOW
Terminating Zone: WOODBEND GRP
Muskwa.
HUSKY HZ RAINBOW 13-13-110-7
PRODUCTION - NPW (C)
Well ID: 00/13-13-110-07W6/0
Fluid: CRUDE OIL
Licensee: HUSKY OIL OPERATIONS LIMITED
License Date: 27-Feb-2012
Projected Depth: 3,592.0 m
Field: RAINBOW
Terminating Zone: WOODBEND GRP
Encana Corp. took part in Alberta's record land sale to target a new gas opportunity potentially as liquids-rich as the hottest current play in the U.S., executive vice-president Mike Graham said Monday.
The continent's second largest producer of natural gas participated in the $842-million rights sale on June 1, Graham admitted, not revealing how much Encana spent or how much land it bought up...

“As far as I can see, there are sizable companies targeting the Nordegg and the Banff, and those are the unconventional oil targets and there’s potential that someone is buying this for the Duvernay shale,” Gill said.
A0060 (4-26-010) 100% SCOTT LAND & LEASE LTD. 862,146.56 3,367.76
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A0062 (4-11-011) 70% HANNA OIL & GAS COMPANY - CANADA UL C 1,205.76 4.71
30% FIREFLY RESOURCES LTD.
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A0066 (4-25-011) 100% ARGOSY ENERGY INC. 928,453.12 3,626.77
A0067 (4-14-012) 100% CANADIAN NATURAL RESOURCES LIMITED 29,173.76 113.96
A0068 (4-25-012) 100% LANDSOLUTIONS GP INC. 506,334.72 1,977.87
A0069 (4-25-012) 100% LANDSOLUTIONS GP INC. 353,758.72 1,381.87
A0070 (4-25-012) 100% CAVALIER LAND LTD. 273,374.72 1,067.87
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B0468 (5-23-064) 100% WINDFALL RESOURCES LTD. 3,336,837.12 4,344.84
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B0471 (5-26-064) 100% CANADIAN COASTAL RESOURCES LTD. 3,053,888.00 2,385.85



While there's growing industry interest around some emerging shale/tight oil plays in Alberta, companies involved in the early-phase exploration of them have offered little in the way of publicly-available information and data to date.
Aside from the Alberta Bakken/Exshaw, the Devonian Muskwa/Duvernay shales in northwest Alberta's Deep Basin, the Jurassic Nordegg shales in the Peace River area of Alberta and the Cretaceous Second White Specks in the Deep Basin are also in play.
"Given virtually no long-term horizontal production history and very early geochemical, petrophysical, and mineralogical data, we believe it is too early to comment on which shale oil play will end up at the top of the heap," said Macquarie Equities Research analyst Ray Kwanin a recent report.
"...while thefirst Muskwa horizontal by CCRL produced at a peak rate of 100 bbls per day on a calendar daybasis. So far, there have been no horizontals drilled in the oil window of the Duvernay," he said.
Shale development in the Rainbow area had been relatively non-existent until late September 2009 when CCRL drilled a horizontal well at 02-30-109-08W6 targeting "what we believe is Muskwa shale oil," Kwan said.
"While still on confidential status, the well was producing on a calendar day basis at a peak rate of approximately 100 bbls per day (37-38°API). On top of this, a producer(s), under the guise of several land brokers, managed to purchase over 250 net sections through Crown land sales since 2010," he added.
"In our view, the leading contender is EOG Resources, which recently came out of hiding by licensing a horizontal Muskwa well this summer (T107-R09W6). EOG is arguably the most knowledgeable and astute producer in identifying shale oil plays in North America."
Kaybob Devonian Duvernay
Celtic, as operator, has drilled and completed its first exploration horizontal well at Kaybob South targeting the Devonian Duvernay shale formation. The Company pooled eight sections of 100% interest lands with two other industry partners, ultimately taking a one third interest in 27 gross sections.
The well, which is located at 00/15-33-060-20W5, was drilled and cased over 42 days at a cost of $4.0 million. The horizontal lateral was 1,787 metres, which was 500 metres longer than originally planned, allowing the addition of two frac stages making the total planned frac stages to 13 and leaving a 175 metre interval, which could be fractured by perforating.
During the completion of the well, six stages were fractured over a time interval of 10 days. Each stage was fractured with approximately 100 tonnes of sand and 1,500 cubic metres of slick water. While attempting to fracture the seventh stage, it is believed that a rupture in the casing occurred at the heal portion of the horizontal leg preventing the fracture of the remaining stages. It was decided to flow test the well with the six stimulated stages while determining the feasibility of fracturing the remaining stages. Tubing and recorders were run and the well has flowed on test starting September 11th. Prior to the flow test, the well flowed on clean-up for a total of 140 hours.
After three days on test, the well is currently producing natural gas at a rate of 2.1 MMCF per day and 56° API condensate. The gas is liquids rich and is expected to yield total liquids of approximately 75 barrels per MMCF of raw gas including free condensate.
After completing the flow test, the well will be shut-in, allowing for build-up. Bottom hole pressure is expected to be approximately 50 MPa. Although the completion operations were suspended part way through the process, it is estimated that the well could have been completed with a 13-stage multi frac for approximately $3.0 million, without any operational difficulties. As a result, total drilling and completion costs would be approximately $7.0 million.
The Company is encouraged with the results from the first horizontal well and anticipates good economics with expected gas rates from a horizontal well with a complete 13-stage fracture. The high liquids content provides enhanced economics in the current environment where oil fetches premium pricing over natural gas...