Worsley

The-Peace-River-Arch-Core-Area.jpg

WORSLEY – THE JOINT VENTURE OPERATIONS

  • 90 Sections of Crown oil and gas rights (50% WI)
  • Initial 50% Joint Venture that anchored the first financing for Aroway in October 2010
  • Began as 4 sections; each section contained a Leduc pinnacle target, grew into a 15 well drill program and working interest in over 40 wells
  • Primarily a gas prone area, but oil targets are being discovered
  • The land base contains numerous resource play types currently being explored in NW Alberta and NE British Columbia (Montney, Nordegg, Cadomin, Winterburn, Wabamun)
  • Predominant oil formation is the Charlie Lake and Montney, predominant gas formation is the Leduc
  • The property contains 10 drill ready deeper targets (50% WI) to Leduc and Granite Wash targets (oil)
  • The property contains 12 drill ready shallower oil targets (50% WI) to Belloy, Doig and Charlie Lake targets (oil)
  • Extensive 3D seismic coverage, access to 3rd party JV Operator infrastructure

2013 Reserves @NPV 10% (in millions)

  • Proved (P): 760.2 Mboe
  • Proved plus Probable (P+P): 2987.3 Mboe
  • Status:  Currently due to gas prices, there is minimal production flowing from the joint venture property as the JV operator wishes to keep the gas plant operational.

Development Plans:

  • Given the gas price we have scaled back any capital plans, and will manage the property in a maintenance only type operation
  • The oil targets, primarily the Charlie Lake, also produce associated gas and the price we pay to conserve and process the gas results in the gas being worthless, and the oil carries the cost to produce the gas
  • Until a real gas price recovery occurs, (which would mean the property contributes cash flow and earnings) Aroway prefers to keep the oil and gas in the ground.
  • Farm out resource type plays