Taylor Hill Exploration Ltd. (“Taylor Hill”) has identified a number of opportunities on it’s land holdings where older wellbores exist on the lands which either:
Have well logs which show potential in zones which may not have considered productive when these wells were drilled by the operator. (“Bypassed Pay zones”) These zones could now be considered economically viable due to advances in the local understanding of the geology of the area, changing economics, making less prolific formations economically viable because the operator made an error.
Have wells which produced oil or gas but were abandoned or suspended when Taylor Hill leased the mineral rights to the zone which was previously productive. While the well has been abandoned or suspended it may be that economic volumes of oil or gas exist due to improved prices or improvements in the technology to enhance the production rate. These opportunities exist and in some cases infrastructure, such as pipelines, already exist from the previous production period. (“ Reactivations”)
Both opportunities can be very profitable and can be performed at reduced risk due to the cost reduction achieved by avoiding the cost of drilling or infrastructure.
Taylor Hill has identified 57 such opportunities. All have opportunity to be evaluated at reduced cost compared to newly drilled wells; however they all have risk, in some cases will have depletion, and should be evaluated independently in order to determine if the risk fits a company’s strategy.
For more information on these opportunities contact Steve Benediktson at Ph. 403-554-5653 or Greg Johnson at Ph. 403-630-1455.
