Diconville, Alberta Properties
In December 2014, Eagle acquired a 50% non-operated working interest in a producing petroleum property under horizontal waterflood in the Dixonville Montney “C” oil pool located in northern Alberta. The pool is currently operated by Spyglass Resources Corp. and is producing at an approximate rate of 2,500 boe/d gross (1250 boe/d working interest). The Montney “C” oil pool is one of the premier waterfloods in Western Canada with a decline rate less than 10 percent, high netbacks, long reserve life and low future maintenance capital.
Eagle has a 50% ownership in a central oil battery. All oil produces into this facility which has a treating capacity of approximately 4,000 bbl/d of oil and 37,000 barrels of water per day. The battery facility also consists of a 400 horsepower three stage solution gas compressor. In addition, there are 23 test satellites and a gathering system consisting of 35 kilometers of emulsion pipeline and 25 kilometers of water injection pipelines. In 2014, the gathering system was upgraded and optimized.
Solution and non-associated gas is gathered and processed at the Spyglass operated compressor station, in which Eagle owns a 50% working interest.
- Dixonville, Alberta
- 110 gross (55 net) producing oil wells
- 80 gross (40 net) water injectors
2016 Year-end Reserves
- Grew total proved plus probable reserves by 13% to approximately 20.9 million boe (68% proved, 52% proved producing) from 18.6 million boe (70% proved, 58% proved producing)
- Before tax PV10 value on total proved plus probable reserves of approximately $270 million
- Proved plus probable reserves life index of 14 years(2)
- Proved Developed Producing
- Proved Developed Non-Producing
- Proved Undeveloped
(1) Per McDaniel & Associates Consultants Ltd., and Netherland, Sewell & Associates, Inc., Eagle’s independent reserves evaluators, with an effective date of December 31, 2016.
(2) Reserve life index is calculated by dividing reserves by total working interest production for the year, which, in 2016, is based on average working interest production of 3,740 boe/d. Eagle cautions readers to reliability life index as this measure does not have any standardized meaning and may not be comparable to a similar measure presented by other issuers.
Eagle's historical average working interest production, and estimated average working interest production for 2017 is as follows:
(1) 2017 average production guidance includes both working interest and royalty interest production (shown at the mid-point of the 3, 800 to 4, 000 guidance range).
(2) Q4/14 production is after the Permian asset disposition and before the Dixonville asset acquisition.
Advisory regarding future production estimate:
Eagle's estimated future production is based on assumptions regarding its proposed drilling program assuming a success rate that, in turn, is based upon historical drilling success and an evaluation of the particular wells to be drilled. Eagle's actual results could differ materially from those anticipated due to many factors, including, but not limited to, the inherent risks associated in the drilling, completion and operation of oil and gas wells. Additional risks and uncertainties regarding Eagle's business are described in Eagle's Annual Information Form dated March 16, 2017 under the heading "Risk Factors".
Palo Pinto Properties
Eagle's Palo Pinto County wells primarily produce from the Lower Pennsylvanian aged Strawn, Atoka and Marble Falls Limestone zones. We also have Mississippian aged Barnett shale potential across our Palo Pinto County acreage.
Palo Pinto County lies within the Fort Worth Basin which is well known for its Barnet shale play
that led the industry in the development of horizontal shales. Eagle's Fort Worth Basin Palo Pinto
County assets have stacked pay which primarily produce natural gas, however, oil production occurs in
some of our productive horizons.
Salt Flat Properties
The Salt Flat field oil reservoir, contained within the Edwards limestone formation, is located approximately 850 metres (2, 728 feet) below the surface and is between 15 metres and 45 metres thick.
- Salt Flat field in Caldwell County, Texas
- 59 gross (44.4 net) producing wells
- 13 gross (8.2 net) non-producing wells
- 3,200 (2,600 net) acres
Eagle uses horizontal drilling technology to exploit the Salt Flat Field. The horizontal wells that have been drilled to date have been completed mostly in the uppermost dolomite zone of the oil reservoir, located approximately three metres (10 feet) from the top of the Edwards limestone formation, and have lateral reaches of up to 762 metres (2,500 feet).
Due to very good reservoir quality, these wells do not require any acid or fracture stimulation.
The Hardeman Basin contains stacked pays similar to the Permian Basin. Most of the productive horizons on our acreage are:
- Hardeman Basin in Hardeman County, Texas and in the counties of Greer, Harmon and Jackson in Oklahoma.
- 47 gross (35.3 net) producing wells
- 16 gross (15.4 net) non-producing wells
- approximately 70,000 acres
- Pennsylvanian Age (Cisco, Canyon, Strawn, Atoka, Morrow)
- Mississippian Age (Barnett Shale, Holmes, Chappel Lime)
- Ordovician Age (Ellenberger, Arbuckle)
Eagle's wells primarily produce from the Mississippian aged Chappell limestone/dolomite and the Holmes sand. An Oolitic Shoal is often found just above the Chappell Dolomite and can also be a prolific producer where present. We also have production from the Pennsylvanian aged Canyon lime and Atoka conglomerates.
In the Texas portion of the Hardeman Basin, most of the horizontal wells have been drilled into various Mississippian reservoirs, including the Chester, Chappel, and Barnett. However, production has been found by other operators in horizontal wells drilled in the Permian Wolfcamp, and Pennsylvanian Canyon (Palo Pinto) and Atoka (Bend) formations.