The Montney is a pervasive hydrocarbon system over 100km wide that is rapidly emerging as one of North America’s premier resource plays. It forms part of the Western Canadian Sedimentary Basin, which is a sedimentary wedge bounded by the Rockies to the West. The advent of modern horizontal drilling and fracture stimulation completions has unlocked tight rocks that were not previously commercial including a large resource in the Montney siltstone.
The ultimate potential, commercial volumes of unconventional petroleum in the Montney formation is estimated to be 449 Trillion cubic feet of natural gas, 14.5 billion barrels of natural gas liquids (NGLs) and 1.1 billion barrels of oil. Reproduced and authorized for re-use by the National Energy Board. Excerpt taken from “The Ultimate Potential for Unconventional Petroleum from the Montney Formation of British Columbia and Alberta – Energy Briefing Note”. Complete article may be found here.
The Montney is currently the most active oil and gas play in Canada and has attracted more than $22 billion in M&A deals since 2010. The play has been a growth catalyst for a number of mid-tier Canadian companies such as Crew Energy and ARC Resources, as well as attracting significant investment from international majors, including Shell, Encana, Exxon, Sinopec and PETRONAS.
There is a high degree of confidence in commercial development of the play, with over 3,500 horizontal wells having been drilled. Originally assessed to be a dry gas resource play, the drilling activity in the Montney has advanced east into the wet gas (condensate) over the last year and most recently into the oil window with successful results. The increased liquid yields are improving on the already attractive gas well economics.
Tamaska is focused on the liquids rich portion of the play where the latest published well results indicate that the Montney could potentially rival the Eagle Ford in performance. The areal extent, depth, thickness, style of trapping, liquids content and economics have led to favourable comparisons between the Montney and Eagle Ford Shale.
To date Tamaska has acquired a total of 19,528 net acres at a cost of approximately A$3.2 million (A$164/acre).
Once the Land acquisition phase is complete, further details on the project areas will be provided.
Deep Basin Hydrocarbon System
Montney Liquids Fairway