Our Western Saskatchewan Business Unit “Western SK” is comprised of two Regional Assets; West Central Saskatchewan “WCSK” and South West Saskatchewan “SWSK”:
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