Core Properties
Rallyemont has acquired almost 100% interest in 83 sections (53,000 acres) of west central Saskatchewan heavy oil land in two main focus areas: Prince and Bagration. The Company's primary focus area is Prince, which is currently in the development stage. Bagration is the secondary focus area and is currently in the exploration phase.
The Prince Focus Area
The Prince focus area consists of 50 contiguous sections of land acquired from both crown and freehold mineral right owners. The property is approximately 2 miles east of a former thermal EOR operation that used cyclic steam stimulation (CSS) and water drive to produce over a million barrels of heavy oil from the 1970’s through to the 1990’s. The property contains 42 historic core, which was used to identify the existence of multiple Upper Mannville targets.
To date, Rallyemont has completed an extensive exploration program consisting of the drilling of 22 exploration holes, 169 kilometers of 2D seismic, and approximately 34 square kilometers of 3D seismic. A summary of the core analysis is presented below:
Average Oil and Reservoir Properties on McLaren Core
- Net pay 14 meters
- Permeability (vertical and horizontal) 2-7 Darcy
- Porosity 34%
- API gravity at reservoir temp (20ºC) 9.5º
- Viscosity at reservoir temp 295,000 cp
- Average oil saturation 80%
- Geological analogs to existing thermal production at Pikes Peak (Husky Energy), Firebag, Christina Lake, and Provost McLaren.
- Preliminary reservoir simulation analysis based on SAGD shows favorable results with a high recovery factor of between 49-66% and a favorable steam-oil ratio of 3:3:1.
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Average Oil and Reservoir Properties on Sparky Core
- Net pay 14 meters
- Permeability (vertical and horizontal) 2-8 Darcy
- Porosity 34%
- API gravity at reservoir temp (20ºC) 10.5º
- Viscosity at reservoir temp 200,000 cp
- Average oil saturation 80%
- Geological analogs to existing thermal production at Husky Energy's Bolney project.
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Development of Prince
Rallyemont has now completed a substantial exploration program at the Prince property to facilitate a thermal development project. The Company will continue to assess all development options through internal development, joint venturing, or divestment. For internal development, Rallyemont has completed preliminary engineering work, including a scoping level study for a 5,000 to 10,000 barrel per day capacity thermal project, as well as reservoir and rail transportation modeling. In addition, the Company has submitted EOR and Environmental Project Proposal (“EPP”) applications to the Saskatchewan Government. Next steps include detailed engineering, design and development.