West Natural Gas Region

West Natural Gas Region

This region includes the liquids rich natural gas areas in Northeast BC and Northwest Alberta. The Deep Basin properties fall within this region.

Canadian Natural has significant net unproved acreage in conjunction with operated facilities and an extensive pipeline network that provides significant competitive advantage. In Northwest Alberta, Canadian Natural produces liquids rich natural gas from multiple, often technically complex horizons, with formation depths ranging from 700 to 4,500 meters.

The Wild River assets provide a premium developed and undeveloped land base in the deep basin, multi-zone gas fairway and the Peace River Arch assets provide premium lands in a multi-zone region along with key infrastructure. In Wild River, we have achieved sustainable cost control by reducing the number of drilling days per well and now routinely commingle up to 12 geological zones, decreasing the average cost of completion per zone by as much as 50% through limited entry fracs. Most notably, we have increased the reserves per well while reducing the cost to drill new wells.

In the Deep Basin our Lower Doig/Montney resource project is similar in many ways to the Wild River area. Again, we are using our land and infrastructure to reduce the cost of entry into this emerging resource play. Our initial position in the Montney was greatly enhanced by the timely acquisition of Anadarko Canada Corporation. We capitalized on our existing land position at that time, giving us early exposure to the play. This allowed us to acquire strategic sections of prime Montney land at a fraction of today’s cost.

The southern portion of Northwest Alberta provides exploration and development opportunities in the regionally extensive Cretaceous Cardium formation and in the deeper, tight gas formations throughout the region. The Cardium is a complex, tight natural gas reservoir where high productivity may be achieved due to greater matrix porosity or natural fracturing. The south western portion of this region also contains significant Foothills assets with natural gas produced from the deep Mississippian and Triassic aged reservoirs.

The Foothills area has a large inventory of development and exploration ready to drill prospects. Canadian Natural has the land, infrastructure and expertise to exploit the large undiscovered remaining resources and a growing drilling location inventory.

Canadian Natural is one of the largest holders of undeveloped land in British Columbia. Along with lowering and controlling our costs, this land position combined with our extensive infrastructure allows for low cost entry into the overheated market for natural gas resources, most notably in the Montney shales. The progress we have made in the Deep Basin Lower Doig/Montney play continues into our Northeast British Columbia Montney project at Septimus, which is now in the first phase of production. The Company will maximize its cost effective position by integrating the data with the right technology, and acquire new land and assets that fit existing infrastructure. The Helmet area of Northeast British Columbia has a play that contains significant thicknesses of natural gas pay in the Muskwa shale. Based on existing data, our strategic land position and our infrastructure, we have the ability to further evaluate the Muskwa potential in the future. Significant geological variation extends throughout the productive reservoirs in this region located west of the British Columbia and Alberta border to Prince George, producing light crude oil, NGLs and natural gas.

Natural gas and associated NGLs reserves are found in numerous carbonate and sandstone formations at depths up to 4,500 vertical meters. The exploration strategy focuses on comprehensive evaluation through two dimensional seismic, three dimensional seismic and targeting economic prospects close to existing infrastructure. The region has a mix of low risk multi-zone targets, deep higher risk exploration plays and emerging unconventional shale gas plays.