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PROJECT SUMMARY
The Company has an attractive land position on 100 gross sections (64,000 gross acres) in highly prospective, multi-zone potential areas of northeastern BC. The prospective zones include shallow rights (Moosebar Shale, Gething CBM, Nikanassin and other formations) and deep rights (Montney/Doig, Belloy and other formations). The Company is an active explorer/operator and has entered three joint ventures with experienced, successful and well-funded oil and gas producers to aggressively advance the exploration and development of its projects. The Company and its partners are currently implementing five exploration programs:
Deep Rights exploration and development
| 1. |
Joint venture with Crew Energy (TSX: CR) on Peace River Project and Moberly Prospect, covering 55 sections or approximately 35,600 gross (17,800 net) acres; |
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2. |
Joint venture with West Energy (TSX: WTL) on Monias Prospect, covering 10 sections or approximately 6,518 gross (2,705 net) acres. Net acres on Monias Prospect include nine sections with a 35% working interest and one section retained by the Company at 100% working interest. |
Shallow Rights exploration and development
| 3. |
Joint venture with Hudson’s Hope Gas Ltd., a subsidiary of GeoMet, Inc. (NASDAQ: GMET) on Peace River CBM Project covering 78 sections or ~50,188 gross (25,094 net) acres; |
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4. |
Operated by Canada Energy: joint venture with Hudson’s Hope Gas Ltd., a subsidiary of GeoMet, Inc. (NASDAQ: GMET) on the Moosebar Shale rights on Peace River Project covering gross 78 sections; |
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5. |
Operated by Canada Energy: Monias Prospect and Farm-in from Major covering 18 sections or approximately 11,734 gross (10,169 net) acres. |
The summary of the exploration and development programs is presented below:
| Property |
Gross Acreage |
Working Interest |
Partner |
2008 Capital Expenditures |
Funded
by CE |
Funded by
JV partner |
# of gross wells |
# of net wells |
|
Peace
River
Project |
|
|
|
Min |
Max |
Min - Max |
Min-Max |
Min - Max |
Min - Max |
|
Shallow
Rights -
CBM |
50,188 |
50% |
GeoMet Inc. |
$20.0
MM |
$20.0
MM1 |
$10.0
MM1 |
$10MM |
8 (3) |
4 (3) |
|
Shallow
Rights –
Moosebar
Shale |
50,188 |
75-87.5% |
GeoMet Inc. |
$1.5
MM(1) |
$1.5
MM(1) |
$1.5
MM(1) |
$Nil |
1 |
0.75 |
|
Deep
Rights |
33,000 |
50% |
Crew Energy |
$17.5MM-
$21.5MM |
$22MM-
$32MM |
$Nil -
$1MM |
$17.5MM
- $31MM |
4-5 |
2 -
2.5 |
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Monias Prospect |
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|
|
Shallow
Rights |
11,734 |
87% |
Major |
$2.5
MM(2) |
$2.5
MM(2) |
$2.5
MM(2) |
$Nil |
2 |
1.4 |
|
Deep
Rights |
6,518 |
42% |
West Energy |
$5MM |
$16MM |
$Nil |
$5MM -
$16MM |
1-3 |
0.35
-
1.05 |
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Moberly Prospect |
|
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|
|
|
|
|
|
Shallow
Rights |
2,600 |
50% |
Crew Energy |
$Nil |
$Nil |
$Nil |
$Nil |
None |
None |
|
Deep
Rights |
2,600 |
50% |
Crew Energy |
$2.5MM-
$3.5MM |
$8MM |
$Nil |
$2.5MM-
$8MM |
1-2 |
0.5-
1 |
|
Total |
|
|
|
$47MM -
52MM |
$68MM-
$78MM |
$13MM-
$14MM |
$34MM -
$64MM |
17-21 |
9 -
10.7 |
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1. Includes $1.5MM for one Moosebar horizontal well to be 100% funded by CE |
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2. Includes 2 farm-in wells 100% funded by CE |
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3. Includes 5 new CBM wells plus connecting of 3 previously shut-in wells plus 1
Moosebar horizontal well |
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