Our Saskatchewan Business Unit is comprised of four Regional Assets; West Central “WCSK”, South West “SWSK”, South East “SESK”, and Weyburn EOR:
Our West Central Saskatchewan “WC SK” Business Unit represents our Viking resource oil play. Focus areas are Kerrobert, Plenty, Dodsland, Lucky Hills, Whiteside, and Elrose. The key characteristics of this play are light 38° – 40° API oil, predictable geology and production profiles, as well as consistent and repeatable economics. Lucky Hills and Whiteside are characterized by horizontal primary oil development wells with quick payouts and a high operating netback. The Eagle Lake property is characterized by low decline waterflood supported production from legacy vertical and horizontal infill wells. Additional development is ongoing through the drilling of infill horizontal wells and reactivation of the waterfloods to increase reserve recoveries. Kerrobert is analogous to Eagle Lake with reservoir properties conducive to successful waterflooding. The Kerrobert waterflood is in its infancy of development, relative to Eagle Lake, and as a result has significant upside related to reserve recovery and decline stabilization. The Viking oil play provides some of the fastest project payouts in the industry and provides flexibility on growth requirements, which is further enhanced by lowering declines through our waterflood optimization and expansion initiatives. Further value generation is being created through organic inventory expansion initiatives.
Our Southwest Saskatchewan “SW SK” Business Unit’s assets are concentrated west of Swift Current, Saskatchewan and are characterized by predictable low base decline and medium crude oil (18 - 26° API) production. This asset was incorporated into the Whitecap portfolio opportunistically as an acquisition in 2016 and continues to generate significant free funds flow. Multiple active waterfloods, as well as three established alkaline, surfactant, and polymer "ASP" floods, are sustaining the area with 92% of production coming from enhanced recovery. Additional waterflood and ASP potential exists and will be part of our ongoing enhanced oil recovery "EOR" development programs. The primary formations being targeted in the area are the Atlas, Success, Roseray, and Shaunavon. New areas and pools within the existing SW SK land base are continually being pursued. These properties had not seen significant development prior to Whitecap, and we combine horizontal wells, multi-stage frac technology, and conventional production and EOR optimization efforts to maximize production and oil recovery from these pools
The SESK region was added to the Whitecap portfolio through the acquisition of NAL and TORC. The acquired asset base is comprised of a diverse portfolio consisting of both conventional and unconventional light oil play types. The Conventional Mississippian is characterized by 30°-40° API oil, high netbacks, and low decline which generates significant free cash flow. Properties target the Alida, Frobisher, Midale and Ratcliffe formations which provide evolving opportunities through multi-legged horizontal drilling and well re-entry techniques in areas with stacked flow units. Conventional wells have high deliverability supported by an active regional aquifer and provide robust economics with significant high quality inventory.
The historic conventional Midale play in South East Saskatchewan has evolved in more recent years through horizontal multi-stage fracture stimulation. Delineation drilling has transitioned the Unconventional Midale play to a development focus in several key areas with predictable and repeatable results yielding competitive economics. The key characteristics of this play are 26°-38° API oil, large OOIP, and low recovery factor to date. The Midale formation has favorable reservoir characteristic for waterflooding and several key unconventional pilots are being initiated across our asset base. Additional upside is expected with further play delineation.
The Torquay/Three Forks land base is largely undeveloped but has been delineated and ready for full scale development. The play is characterized by 40° API oil, high netback, with well defined resource mapping. Further value generation will come through infrastructure expansion, optimization of completion design, and drilling efficiencies.
The “Weyburn” property is located south of Weyburn, Saskatchewan. The Weyburn property is the largest Carbon Capture & Utilization Storage “CCUS” project in the world which underpins why Whitecap has one of the lowest emissions intensities in the world along with our commitment to continue to emphasize environmental sustainability as a core value. This internationally recognized, world class project has safely captured over 36 million tonnes of CO2. Since 2019, we have stored 2.0 million tonnes of CO2 per year which means we sequester more CO2 than our yearly corporate emissions (direct and indirect), making us a carbon negative company. The primary reservoirs being developed are the Midale and Frobisher. Whitecap has a 65.3% operated working interest in the Weyburn Unit which produces primarily light oil. The Weyburn Unit has been in existence since the 1950’s when it was discovered. Waterflood operations commenced in the 1960’s with a world class CO2 enhanced oil recovery "EOR" development commencing in 2000. Significant expansion opportunities remain to expand the Weyburn CO2 flood and further mitigate a low 3-5% base decline rate in conjunction with a very low maintenance capital requirement.
Whitecap's world class expertise in CO2 EOR and sequestration provides the foundation to continue to drive down Whitecap's GHG emissions intensity.