West Hazel

WEST HAZEL – SASKATCHEWAN

  • 0.3 Sections (5 LSD’s), 100% working interest
  • Acquired in November 2012 for $2,769,000 or $10,450 per flowing barrel
  • Existing heavy oil production of 265 bbls/day
  • Heavy Oil (12-16  ͦAPI oil) in Lloydminister area, Saskatchewan; production railed to market
  • Multiple horizons in Mannville Sands (General Petroleum, Sparky & Waseca, Dina disposal zone)
  • Well depth of approximately 800 meters
  • All season access, three phased power and 1.5 hours trucking time to rail loading facility

2013 Reserves @ NPV 10% (in millions)

  • Proved (P): 3908.2 Mboe
  • Proved plus Probable (P+P): 6747.4 Mboe

2014 Development Plans:

  • Install water injection/disposal well and gathering system to reduce operating costs and extend reserve life
  • Restart 2 of the suspended wells, and speed up all pumps on existing producing wells
  • Drill 2 of 5 infill well locations
  • Waterflood application submission