Deep Basin

Located just south of Grande Prairie in Northwestern Alberta, the Deep Basin is one of the premier natural gas exploration and development areas in Western Canada. In the Deep Basin, ProspEx controls 31,000 net acres of undeveloped land in Kakwa, Gold Creek and Elmworth.

The Deep Basin is a key growth area for ProspEx. This area offers multiple productive horizons in a pervasively gas-saturated environment with the potential to drill higher productivity wells.

Drilling activity in the Deep Basin typically targets sweet, gas-bearing formations of Cretaceous age, such as the Cardium, Cadotte, Falher, Gething and Cadomin. At Kakwa, drilling has primarily targeted the Falher formation, while at Elmworth the Cadomin has been the primary focus. In Gold Creek, ProspEx has production from both Cretaceous and Triassic age formations.

Kakwa

ProspEx has a large land position of 21,000 net undeveloped acres in the Kakwa area of the Deep Basin in two contiguous blocks known as East Kakwa and West Kakwa. The Kakwa area has been a focus for much of ProspEx’s capital program and will continue to be a major focus as this area will take the lead in ProspEx’s transition to a repeatable play strategy.

The primary targets in Kakwa are thick channels in the Falher formation of Cretaceous age. Drilling locations in these channels are selected using careful processing and interpretation of three-dimensional (3D) seismic coupled with geological mapping.

Within the Kakwa area, ProspEx is the owner and operator of the field gas gathering and compression system used to produce the ProspEx wells.