See all articles

Sinopec markets Duvernay asset

Chinese state-run player places Buck Lake properties on the block

Chinese state-run player Sinopec is looking for buyers for its Duvernay shale properties in the Buck Lake area of Alberta.

The asset covers Sinopec's 100% working interest in 24,320 acres of Crown Duvernay rights, according to an information sheet. The company also holds a 100% working interest in the producing 102/16-25-04405W5/02 horizontal Duvernay well. The well has cumulatively produced 44,731 barrels of oil and condensate and 180 million cubic feet of natural gas.

Most of the Buck Lake properties are intermediate term licences with expiry dates in December of this year. At least 10 of the 38 sections are eligible for continuations from the Alberta Crown, according to the sheet.

Active offset operators include Baytex Energy, Resourceful Petroleum and a joint venture of Kiwetinohk Resources and Journey Energy to the east, Repsol and Paramount Resources to the south-east in the Ferrier area, and Crescent Point, Baytex and Teine Energy to the north in the Thorsby and Highvale/Pembina.

On the eastern portion, Baytex has drilled nine wells over the past 18 months which have logged initial 30-day results of 300 to 400 barrels per day, according to the sheet. Resourceful Petroleum has also recently drilled and cased a horizontal Duvernay well that directly offsets Sinopec’s Buck Lake property.

Bids are due on 31 July.

Latest news
Most read