March 2015 - Volume 10 Issue 3

Clear the Way
for Montney

Lunch Money

More Oil Spacing Applications

Clear the Way for Montney
New AER Subsurface Order Declared



Montney operators are celebrating. They will never need another holding, GPP, nor annual pressure survey.

The new AER Subsurface Order No. 1 declares that within a defined area near Grande Prairie, Montney operators have no well density restrictions, and can produce oil at any rate they choose.

The order became a reality in the middle of February after research and deliberation for many months. It reminds industry of similar global changes announced by the ERCB in the South East Alberta in 2008 when it changed the baseline well density for oil and gas wells.

Over the next two months expect many application closures that are no longer necessary because of the new order.

Also expect a general across-the-board tightening in regulatory approvals. This happens every time the regulator makes a concession to industry.

Subsurface orders are a new way for the AER to make a large change to well density baselines in a specific formation in a select area. As shown in the first one, these orders can also grant automatic GPP status in the select area.

~Granger J. Low
MetroPetro


Click for larger image...

Did You Know?
More Oil Spacing Applications Refused by AER


More spacing applications are being closed (refused) by the AER in recent months. Half of the applications decided in November were closed. Nearly a third such applications were refused in December and January.

Proven predicts that this trend will get even worse over February and March because of the Subsurface Order No. 1.



The best way to ensure your application is not refused is by reading closed applications. AppIntel makes it easy to find closed applications similar to the ones you need. AppIntel is web software that data mines AER applications.

Call today for a free demo.
 

Breakfast Lecture
Crude Oil
Calgary, AB
12 Mar 2015
spe.org
Technical Luncheon
Fracturing Fluids: How to Frac with Less or No Water
Calgary, AB
19 Mar 2015
spe.org
Technical Luncheon
Reporting the "Whole Enchilada" - Going Beyond Reserves
Calgary, AB
25 Mar 2015
spe.org