Southwest Saskatchewan Core Area
Rock secured this new core area in early 2011, through the acquisition of a producing pool at Onward. The Company later acquired seven sections of land at Mantario and drilled an exploration well in the fourth quarter of 2011. During 2012 Rock increased the land position on this new play to 27.75 sections, drilled 15 wells and shot more than 70 square kilometres of 3D seismic. By year-end 2012 daily production from this new discovery had exceeded 1,000 boe per day. Heavy oil in Southwest Saskatchewan is less viscous (500-5,000 centipoise), lighter gravity (13-16 degrees API) than Lloydminster heavy oil, and hotter and deeper. The reservoir sand matrix in this area is consolidated, allowing for conventional production techniques as well as secondary and tertiary recovery technologies.
Rock drilled 14 locations during the first quarter of 2013 to delineate the extent of the pool on 40-acre spacing, and current production from the pool exceeds 1,800 bopd. The Company will now begin the detailed investigation and exploitation plan to complete the design for the water and polymer flood.
Plains Core Area
Rock’s Plains core area, located near the City of Lloydminster, produces 900-1,000 boe per day of 10-14 degree API oil with a viscosity of 5,000-15,000 centipoise. These wells employ a cold flow production technique which encourages the production of sand concentrations of up to 30 percent during the first few months of the well’s life. This creates a worm-hole in the unconsolidated formation which provides a “pipeline” for the crude oil to more easily flow into the wellbore. The well is completed with large perforations and a progressive-cavity bottom-hole pump. During the first few months of production, operating costs on these wells are higher than normal to accommodate the high sand production and lack of solution gas. Over time, the sand cut falls to less than 1 percent, production increases and operating costs decline.
Rock’s plans for 2013 in the Plains core area include the completion of up to two high-volume lift projects, further reductions in operating costs, and the drilling of 4-6 development oil wells.