Our Northern Alberta and British Columbia Business Unit “NABC” is comprised of two Regions; Smoky River and Peace River:
The properties in our Smoky River Region include Kakwa, Karr, Kaybob and Wapiti all located in Northwest Alberta. The primary reservoirs being developed are the Cardium, Duvernay and Montney resource play, all of which are light sweet (39° - 42° API) oil or condensate-rich natural gas. This area utilizes pad-based horizontal drilling and multi-stage fracturing, including extended reach horizontals. The Region is comprised of large-scale opportunities and significant inventory setting up Smoky River to provide material future organic growth.
The recent acquisition of XTO Energy Canada is a continuation of Whitecap’s long-term strategy of consolidating high quality assets in our core operating areas to enhance free funds flow and return of capital to shareholders. The XTO assets contain a significant land position in the liquids-rich portion of the Alberta Montney along with the Duvernay at Kaybob. The Montney assets complement our existing Montney assets at Kakwa and Karr and increase our working interest to 100% on certain lands in South Kakwa. Whitecap’s total Montney position is now 638,000 net acres with a total of 2,112 net drilling locations.
Valhalla is Whitecap's original asset area. It is underpinned by the conventional Montney light oil waterflood pool that continues to outperform our original reserves estimates. In addition, we are actively exploiting Valhalla’s ideally situated infrastructure by expanding our presence in the area through the Charlie Lake and Montney oil resource plays. Boundary Lake is located primarily in northeast British Columbia on the Alberta/British Columbia border, just east of Fort St. John, and is characterized by low base declines, low sustaining capital and a predictable production base within an active waterflood. The key characteristics of this legacy oil pool are high operated working interest, and light 35° API oil. Asset enhancement is on-going with waterflood optimization initiatives and the optimal implementation of horizontal wells. Development and completion design reviews are continually ongoing to further unlock additional resource value.