More than 52,000 SHALLOW GAS WELLS have been drilled in Southeastern Alberta and Southwestern Saskatchewan and make a huge contribution to Canada’s total gas production, yet extensive development potential remains. This map-based study focuses on the four most significant shallow gas zones:

1. The Second White Specks Formation
2. The Medicine Hat Formation
3. The Milk River Formation, and
4. The Belly River Group

The study is comprised of three parts:

1. REPORT
2. MAP STUDY, and
3. DATA CD

The report outlines the geology of shallow gas, followed by a discussion of the reservoir and production engineering issues and recommended approach to production optimization. The maps form the heart of the study, and provide a large-scale overview of the shallow-gas resource, highlighting trends in development and production. The accompanying data CD allows a well-by-well review of trends highlighted in the maps.

The maps provide a visual picture of historical development trends, but focus on identifying optimization opportunities. These opportunities include, but are not limited to:

• GAPS IN ZONE DEVELOPMENT where recompletion of existing wells may access untapped reserves, and
• UNDER-PERFORMING WELLS, identified by comparing life-average daily production rate or other similar indicators,
• WELLS THAT HAVE BEEN UNDER-COMPLETED, specifically those with fewer fracture stimulations than total productive zones, and which may be recompleted for additional potential.
• LOW PRODUCERS that may need to be cleaned out or otherwise remedied,
• INACTIVE WELLS that may be returned to production or abandoned
• NON-COMMINGLED AND TWIN WELLS that may be combined and commingled for reduced operating cost and higher productivity,

This bird’s-eye view of shallow gas development will also enable corporations to:

• BENCHMARK shallow gas development style and performance against competitors
• IDENTIFY WIDESPREAD ISSUES
• PRIORITIZE future development and optimization activities.
• IDENTIFY UNDER-PERFORMING ASSETS FOR ACQUISITION, as well as differing development strategies amongst operators, and
• IDENTIFY NON-CORE PROPERTIES.

OVERVIEW OF MAPS

The map component of the Shallow Gas Study illustrates all shallow gas wells drilled in Alberta and Saskatchewan south of the 31st Township and East of the Fifth Meridian. These maps provide a visual context across the large aerial extent of the shallow gas pools and, used in conjunction with one another, QUICKLY HIGHLIGHT PRODUCTION AND DEVELOPMENT TRENDS, OPERATION STYLES, RESERVOIR EXTENT, UNDER-PERFORMING WELLS, AND OTHER OPPORTUNITIES. These maps were developed from public data, but the data has, in several cases, been interpreted using engineering techniques to provide relevant, functional and concise information about shallow gas wells. Commingled wells have been identified and separated where valuable for information display. Merak’s PetroDesk software was used to generate the maps.

The following map categories are included in the study:

1. Shallow Gas Operator Map
2. Shallow Gas Zone Maps for all shallow gas zones
3. On-Production Date Maps
4. Cumulative Gas Production Map (per well and per section)
5. Average First-Year Production Rate Map
6. Lifetime Average Daily Rate Map
7. Fracture Potential Map
8. Low Producers and Inactive Wells Map
9. Non-Commingled Wells and Twin Wells Map
10. Well Density Maps for SWS, MH, and MR

PURCHASE PRICING FOR MAP STUDY

A subscription to the study “A Review & Recommended Approach to Shallow Gas Production Optimization in the Western Canada Sedimentary Basin” includes the following:

1. One copy of the report
2. One set of 11” x 17” reference maps
3. One set of 1:500,000-scale laminated working maps
4. One data CD including MS-Excel-formatted tabular data

The pricing for this study is based on a sliding scale, as follows:

Number of shallow gas wells owned/operated Study Price

less than 500 wells $5,000
500 to 1000 wells $7,000
more than 1000 wells $9,000

Non-operators $9,000