Cougar Oil and Gas Canada Inc. Launches Multi-Well Drilling Program in Trout Core Area
Modern technology is allowing more detailed analysis of drilling sites, helping oil companies pinpoint the best potential locations for accessing oil reserves. Cougar Oil and Gas Canada Incorporated is utilizing high-resolution 3D seismic data to identify five drilling targets in the company’s Trout Core area. Cougar is pursuing permits for a three-well Keg River light drilling operation. In addition to permitting, which requires surveys, licenses and lease acquisitions, the company must secure financing. If all criteria are met, Cougar expects to begin drilling in February of next year and continue the operation for 30 days.
Cougar has been operating in the Keg River area for the past 15 years. There are currently 71 producing wells within a four-mile radius of Cougar’s main facility, producing an average of 250,000 barrels of light oil each. The majority of the wells were drilled before 1993, with only 6 new wells started in the past 15 years. The operating wells were thoroughly reviewed by Cougar to help prepare for the new program. New 3D seismic data was also carefully analyzed along with local and regional geological mapping. Careful study of the combined data led to plans for the deepening of an existing wellbore to gain access to an even deeper oil formation. Cougar will also be drilling a new vertical oil well and a new horizontal oil well in the Keg River region.
CEO and Chairman of the Board, William Tighe, said the five potential drilling sites were identified after reprocessing the 3D seismic data and evaluating three different play types. The two prospects not included in the initial program will be targeted for future use. Tighe said, “We are very pleased to be able to kick off this multi-well drilling program.”
Tighe anticipates that the new wells will produce similar output to the existing wells. Data from current wells shows an average rate per well of 164 barrels per day for the first four months of production. A significant advantage of the new prospects is the relatively low cost of completion. Tighe explained the absence of high cost completion techniques would keep initial costs down and provide “quicker payout than many of the other currently popular resource plays which require multi-stage fracs or other high cost completion techniques.”
Calgary, Alberta is the headquarters for Cougar Oil and Gas Canada Incorporated. The company focuses on onshore oil and gas exploration and development and has projects operating in north central Alberta and northeast British Columbia. Tighe looks to the new project as a “significant component for the Corporation’s growth,” and believes it will help Cougar reach its “corporate goal of achieving 2000 barrels of oil production per day by the end of 2011.”