The Duvernay dominated Alberta’s Jan. 28 land sale, claiming both the largest posting in the Pembina area and the highest unit price paid in the Medicine River area for exploration.

Key highlights are outlined below:

A – Peerless: Elk Run Resources purchased half a section of oilsands rights below the top of the Viking to the base of the Woodbend for $2,040/ha. Over the past five years, the Wabiskaw has been the primary target for development in the surrounding area. The nearest offset, 103/14-31-079-22W4/02, produced 384 bbls/d in the last calendar month of production.

C – Pembina: A large posting, totalling 8,192 hectares, sold for a total bonus of $3.03 million to Millennium Land. The parcel comprised a mixture of rights, with the majority covering P&NG rights from the base of the Pekisko to the top of the basement. Since 2022, the Duvernay has been the primary zone of interest within these rights. The nearest offset well, 100/04‑13‑044‑04W5/02, recorded 844 boe/d during its first full calendar month of production. For additional subsurface details, see the Duvernay exploration section in the Q1 2024 geoXPLORER newsletter.

C – Ferrier: Soo Line Resources purchased one section of P&NG rights from surface to the base of the basement for $2,619/ha. Within the surrounding area, the Cretaceous stratigraphic interval (including the Basal Belly River, Cardium, Notikewin, Falher, Wilrich and Glauconitic Sandstone) has actively been developed since 2022. Amongst these plays, the Falher has delivered the strongest gas performance, averaging 3,887 mcf/d during the first full calendar month of production. Both the Basal Belly River and Cardium sandstones are productive for oil, with the Cardium averaging 106 boe/d in its initial calendar month. Additional analysis of the Cardium and Falher plays are available in the Q4 & Q2 2023 geoXPLORER newsletters, respectively.

D – Medicine River: The highest unit price paid at this land sale was $3,012/ha, for a block of six sections of land that included a range of P&NG rights, but four of the six sections covered subsurface rights from the base of the Mannville to the top of the Duvernay. Over the past five years, Paramount Resources Ltd. has actively been developing the Duvernay in the surrounding area. Drilling pads, located approximately 12 km to the northwest, achieved initial production rates of 915 mcf/d in their first full calendar month, based on 15 horizontal cased hole fractured wells. See the Duvernay exploration section in the Q1 2024 geoXPLORER newsletter, for additional subsurface detail.

At the Jan. 28 land sale, the province sold 24,032 hectares of P&NG leases and licences for a total bonus of $11.34 million. Additionally, there were 52 hectares of oilsands rights sold for $0.11 million. This brings the total cumulative bonus paid to date for the year in Alberta to $26.78 million.

For full land sale results, click here: Alberta Collects $11.45 Million At January 28 Land Sale

Data for the map is provided by geoLOGIC systems ltd.’s geoSCOUT.