Our Eastern Saskatchewan Business Unit “Eastern SK” is comprised of three Regional Assets; Weyburn, South Central Saskatchewan “SCSK”, and South East Saskatchewan “SESK”:
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.
The SCSK and SESK regions were 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.