May 21, 2015Volume 5, No. 3
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Drilling ahead profitably in Canada

Leaders drive forward, delivering high IRRs from sweet spots


Tourmaline Oil

Deep Basin King

May 1, 2015

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Duvernay and Montney

May 12, 2015

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This docFinder Alert highlights leading companies in Canada that are adapting to profitably drill ahead at impressive IRRs.

The slide above left from Tourmaline Oil Corporation, the third largest gas producer in Canada, provides a forward-looking snapshot of current new plays and opportunities embedded within its deep portfolio.  Well known as the King of Alberta’s Deep Basin with 2,150 gross sections under its belt, Tourmaline’ other two core areas are the Montney gas/condensate play in northeast British Columbia and the Charlie Lake oil resource play on the Peace River High. Tourmaline is targeting current IRRs from 31% to 116% for its deep bench of current development locations.

This year Encana is focused on its highest-margin assets, two in Canada and two in the US.  Within Canada, the high-value Duvernay condensate play is delivering strong results.  Already in Q1 2015, Encana has achieved a remarkable 30% reduction in D&C costs compared to 2014.  Among the operational efficiencies, Encana is using two simultaneous frac spreads per pad. In addition, the company is finding that higher proppant volumes directly correlate to higher well productivity.  Encana views the Duvernay as a “huge potential growth engine” capable of producing 50,000 boe/d from its existing position, which captures one-third (343,000 net acres) of the high-graded liquids fairway in the play.  Encana’s economics in this area reveal a supply cost (defined as the price necessary to yield a 9% IRR) of <$1.0/Mcfe, $30-$60/boe. 

More HOT slides and data below.
Shown below are more hot slides from PLS’s docFinder database that allow you to take a deeper dive into which plays and companies are making money in Canada in today's challenged price environment.  Below are slides from Bonavista Energy, NuVista Energy, newcomer Boulder Energy, and Whitecap Resources.

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Oil company execs, investors and bankers know full well the value of "competitive reconnaissance." PLS's docFinder database is COMPREHENSIVE and VALUABLE data source to help you stay current on industry and company developments.  Start your free trial to docFinder today!

featured.slides from docFinder

Slide Slide Slide Slide

Spirit River

Wilrich IRRs near 30%

May 7, 2015

Horizontal Montney

Elmworth RORs 51%

April 29, 2015

Belly River Oil

Pembina RORs 30%

April 7, 2015

Viking Oil

Saskatchewan RORs 78%

May 8, 2015

Bonavista Energy holds 1.3 million net acres in its two core areas, the Deep Basin and West-Central Alberta. Within the Wilrich area, Bonavista has achieved an 84% production CAGR since Q4 2012 from the Spirit River formation, where it is currently producing 12,000 boe/d. Type curves are running at an impressive 790 MBOE EUR with a capex cost of $5.1 million. With 175 identified locations, the area is getting one-third of 2015’s budget. With an expected 20% cost reduction, IRRs at $2.67 gas are 34% and reach nearly 60% at $3.50.

NuVista Energy has an excellent balance sheet and is increasing its focus on condensate-rich Montney wells in Alberta. NuVista is in a great neighborhood where the industry is currently running 30 rigs. Within its Elmworth development block, NuVista has two rigs running and type curves have increased from 4.4 Bcf to 6.0 Bcf. In NuVista’s own words, “top plays win at any price.” This slide shows the improvement in Montney IP30 rates and operational improvements which will surely continue to enhance existing economics.

Boulder Exploration is expected to begin trading today (May 21) after being spun out of DeeThree Exploration. Boulder’s focus is the Belly River in west-central Alberta and the Peace River Arch area. Boulder is a growth-oriented company with 8,000 boe/d in the heart of the Pembina/Brazeau oil fields. Boulder launches with 400+ locations representing a 20-year inventory. With current well costs of $4.5 million and EURs of 320 Mboe (80% oil/liquids), RORs approach 30% at $60 oil and have substantial leverage to a rising oil price.

Whitecap Resources has a sustainable light oil growth and income platform from a current inventory of 3,066 development locations. The company is guiding an impressive 22% growth rate in 2015 to 39,700 boe/d. This year, the Viking oil play in Saskatchewan is getting 39% of the budget, more than any other play in Whitecap’s portfolio. New well netbacks of $36/boe are projected for this play. The Lucky Area boasts RORs up to 78% with finding costs as low as $11.22/boe. Wells cost $0.8 million with EURs up to 75 Mboe. IP30s averaged 118 boe/d in 2014.


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Full Presentation


Full Presentation


Full Presentation