Dixonville, Alberta Properties
- Located near Peace River, Alberta
- 88 gross (43 net) producing oil wells
- 87 gross (44 net) water injectors
- Approximately 27,000 gross acres (12,000 net)
In December 2014, Eagle acquired a 50% operated working interest in a producing petroleum property under horizontal waterflood in the Dixonville, Montney “C” oil pool located in northern Alberta. 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 life reserves and low future maintenance capital.
Eagle has a 50% ownership in the Dixonville field central oil battery. All oil from the Dixonville field 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 compressor station, in which Eagle owns a 50% working interest.
Twining, Alberta Properties
- Located in the Twining Field, Alberta (near Three Hills, AB)
- 60 gross (37 net) producing oil wells
- 65% light oil and natural gas liquids
- Approximately 21,600 gross (13,500 net) acres
Approximately 60% of Eagle’s working interest production from the Twining Property is from 11 horizontal wells, almost all of which were drilled and completed in 2013 and 2014. Eagle has identified eight additional horizontal drilling locations that could be drilled in the Twining area in the near future provided they meet Eagle’s economic criteria. Eagle has also identified numerous other horizontal well locations in the Twining Pekisko pool, which in the future could accelerate production and optimize the recovery of oil and natural gas reserves.
2013 Year-end Reserves
The reserves reflect Eagle's reserves prior to the disposition of Permian assests.
- Total proved plus probable reserves of approximately 14.3 million boe (76% proved, 36% proved producing).
- PV10 value of total proved plus probable reserves of approximately $US 269.7 million.
- Reserve life index of 11.7 years based on the mid-point of 2014 average working interest production guidance.
- Proved Developed Producing
- Proved Developed Non-Producing
- Proved Undeveloped
Eagle’s historical average working interest production, and estimated average working interest production for 2014, is as follows:
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 20, 2014 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.