Overview

ProspEx Resources Ltd. ("ProspEx") is a Calgary-based, Canadian junior oil and gas company focused on the development of natural gas assets in an area believed to be one of the richest in Western Canada.

Since 2004, ProspEx management and technical teams have concentrated their efforts in the gas-saturated, Cretaceous-age rocks of the deep basin fairway of Western Alberta. ProspEx owns rights to approximately 90,000 net undeveloped acres of land in two core areas:

The Deep Basin

West Central Alberta

New proactive strategy builds on proven successes

Since its inception, ProspEx has grown “through the drill bit” and through smaller asset acquisitions. With the advent of new technologies and a challenging natural gas business environment, the company’s strategy has evolved to emphasize repeatable projects utilizing horizontal drilling with multi-stage fracturing technology. Early results show that initial production can be improved by about a factor of five, while typically capital costs increase by only a factor of two compared to vertical drilling. This increase in capital efficiency has the potential to radically improve economics, generating attractive returns in an environment of relatively low natural gas prices.

In this approach, ProspEx expects to continue to focus on Cretaceous-age reservoirs, as it has since inception. Drilling activity typically targets channels in Mannville aged formations within the Cretaceous section. These are conventional reservoirs with geology that is well understood due to decades of industry activity. Typically, they are visible on 3D seismic, and have vertical well control in the area by virtue of historical industry drilling activity. ProspEx believes that these factors combine to create an excellent niche in which junior companies can apply the new technology of horizontal, multi-stage fracturing. These plays do not typically require large amounts of risk capital and cycle times are typically much shorter than unconventional plays, making them well suited for junior companies. 

Having executed a highly successful pilot program with horizontal wells at Kakwa in the Deep Basin, ProspEx is now working to demonstrate the applicability of this technology to its assets in West Central Alberta. Backed by the right people, focused asset base and industry know-how, ProspEx represents a promising opportunity for the future.