• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 14 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 19 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 12 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 5 days The Federal Reserve and Money...Aspects which are not widely known
  • 4 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 10 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 6 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 13 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 14 days Goldman Betting on Cryptocurrencies
  • 17 days Сryptocurrency predictions
Biden Quietly Approved 2 Million Bpd Texas Oil Terminal

Biden Quietly Approved 2 Million Bpd Texas Oil Terminal

Despite its clear anti-oil stance,…

Oil Shoots Up On Huge Crude Inventory Draw

Oil Shoots Up On Huge Crude Inventory Draw

Crude prices jumped today after…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

A Gas Company Revolutionizes Canadian Oil

The next big thing is here in the Canadian oil patch.

I wrote a few weeks ago that a number of new Alberta and Saskatchewan petroleum plays are being poked at using multi-stage fracturing technology. One being the Cardium oil play of western Alberta.

The Cardium went "prime time" this week.

On Monday, PetroBakken Energy announced a $350 million takeover bid for smaller rival Berens Energy. On the surface, the deal looks like an odd marriage.

Berens produces 3,600 barrels of oil equivalent per day. 80% of this is gas, mostly from the Pembina area of western Alberta.

PetroBakken is predominantly an oil producer. The company pumps over 45,000 barrels per day. As the name suggests, most of this output comes from the Bakken play of southeastern Saskatchewan.

The Bakken was a big story over the last few years. Multi-stage fracking completions on horizontal wells here have increased production rates dramatically. Taking the play's economics from subpar to stellar.

PetroBakken has been at the forefront of this revolution. The company is recognized as one of the leaders in using multi-stage fracs.

And with this week's Berens acquisition, PetroBakken is moving into new ground in west Alberta. The Cardium play is the reason.

Over its years of producing gas in west Alberta, Berens became very familiar with the Pembina region. The company noticed that the Cardium play here might be amenable to multi-stage fracs that have been so successful in the Bakken.

Berens assembled a large land position in the Cardium play. Fully 70 sections of land (45,000 acres), at an average 60% working interest.

This is what interests PetroBakken. This week's acquisition is a vote of confidence in the Cardium play from one of the better technical teams in the business. PetroBakken sees the Cardium as an area they can run with their fracking expertise.

The results to date from Cardium fracked horizontals have been encouraging. Initial production rates can run in the thousands of daily barrels. This flush production trails off quickly, but even at stabilized production rates of a few hundred barrels per day, the economics on these wells are good.

Costs to drill and complete a Cardium fracked horizontal are running around a few million. Making for a significant return on investment at today's oil prices. Even at $50 crude, the numbers look decent.

The Berens acquisition had an immediate impact on other Cardium players. Most are up 40 to 50 percent this week. The play is real, and it's happening now.

If the Cardium does prove out over the coming months and years, this is the second Canadian play to be revolutionized by multi-stage fracturing. Raising the question: what's next?

Here's to new frontiers,

By. Dave Forest of Notela Resources


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News