LAND HOLDINGS

  • Total acres (net): 1,005,782
  • Undeveloped acres (net):
    714,093
  • Potential Locations: >2,500

STRATEGY

  • Resource focus = scale and repeatability
  • High capital efficiencies
  • Operated and high W.I.
  • Accretive acquisitions with exploration and resource upside

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Operations Overview

Crew's operations are divided into four main operating areas: Princess and Deep Basin in Alberta, Septimus in northeast British Columbia, and Lloydminster, Saskatchewan. Crew also has a number of minor operating areas primarily in central Alberta. Crew will focus on the development of its main operating areas in 2013 and has budgeted capital expenditures of $219 million towards the continued growth of these core areas.  This development will be the foundation upon which the Corporation will continue to grow its base production and includes the drilling of an estimated 99 net wells in 2013.

Princess, Alberta

The Princess area comprises 438 contiguous sections of Crew controlled freehold and Crown land directly south of Brooks, Alberta. The area lies in a unique geographic position in Alberta where the structural effects of the Sweetgrass Arch and the regional dip of the Western Canadian Sedimentary Basin intersect to form an area where the subsurface structure is essential­ly flat. Numerous northwest trending Mannville channels have eroded the Mississippian Pekisko formation forming hydrocarbon traps on the subcrop edge (Tilley and West Tide Lake) and in elongated outliers (Alderson). These outliers can be two to three miles wide and up to 12 miles long. In 2012, Crew initiated waterflooding on six pools bringing the total to eight wells currently under waterflood. At December 31, 2012, the Corporation owned 210 (210.0 net) producing oil wells and 48 (48.0 net) service wells in the area along with three 100% owned oil batteries and associated fluid gathering infrastructure. In 2012, Crew drilled 51 (51.0 net) wells in this area resulting in 49 (49.0 net) oil wells. Production in 2012 for Princess averaged 6,587 boe/d weighted approximately 80% towards 22⁰ to 26⁰ API oil and associated liquids.


Crew’s plans for 2013 at Princess include the optimization of existing production, implementation of three to five new waterfloods and the drilling of approximately 21 oil wells.

 

Deep Basin, Alberta

The Deep Basin operating area, which includes the Wapiti, Elmworth, Kakwa and Wanyandie properties, is located in northwest Alberta near the British Columbia border and was acquired by Crew on July 1, 2011 through the acquisition of Caltex. Production from this area is characterized by liquids rich natural gas from the Cretaceous aged Cardium and Falher formations. Reserves from both of these zones are accessed through long reach horizontal wells with multi-stage propane or water based fracture stimulations. Crew’s production from this area in 2012 averaged 4,810 boe/d weighted 69% to natural gas. At December 31, 2012 the Corporation had 66 (57.2 net) producing gas wells and 4 (3.8 net) producing oil wells in the area which included the drilling of nine (7.2 net) wells during the year resulting in eight (6.2 net) gas wells and one (1.0 net) oil well. All of the Corporation’s production in the Deep Basin area is processed through third party operated facilities.


Development plans in 2013 include the drilling of seven (6.8 net) horizontal wells at Kakwa targeting liquids rich natural gas.

Septimus, British Columbia

The Septimus area is located 15 kilometers south of Fort St. John, British Columbia. The Corporation’s operations at Septimus include natural gas production from the Montney formation. The Montney formation in the Septimus area is a tight siltstone formation that is approximately 300 metres thick which is accessed through long reach horizontal wells that are currently completed with up to 17 multi-stage water-based fracture stimulations. Crew announced in December 2012 an agreement to acquire approximately 36,000 net acres of land which are adjacent or proximal to its Septimus operating area. In February 2013, Crew closed the acquisition of approximately 59 net sections of additional land in the Septimus operating area for $20 million and has retained the exclusive option to acquire approximately 81 addi­tional net sections of land for $36 million. At December 31, 2012 the Corporation had an interest in 37 (33.5 net) natural gas wells and 2 (0.7 net) oil wells in the area. Production averaged 5,965 boe/d weighted 84% to natural gas. The Corporation drilled a total of 8 (7.3 net) wells in the Septimus area in 2012 resulting in 7 (6.3 net) gas wells and one (0.3 net) oil well. Production in the Septimus area is processed through a facility operated by the Corporation that processes predominantly Crew production and is owned by a third party.


Current plans at Septimus for 2013 include the drilling of 11 (9.0 net) wells comprising two (2.0 net) wells targeting oil in the Montney formation and nine (7.0 net) wells targeting liquids rich natural gas. Crew has continued to reduce costs in this area by optimizing capital efficiencies through pad drilling and modified completion techniques. Additionally, investments in water source and disposal infrastructure have contributed to enhanced area economics and signifi­cant improvements in rates of return. A planned expansion of the Crew operated Septimus gas plant in 2013 is expected to increase the capacity to 64 mmcf/d from the current 46 mmcf/d. The increase in capacity is expected to benefit the area in 2014 and beyond with corresponding increases in production and reduced per unit operating costs.

Lloydminster, Saskatchewan and Alberta

The Lloydminster operating area includes Crew’s operations at Wildmere, Swimming, Viking- Kinsella, Baldwinton, Forestbank, Golden Lake, Lashburn West, Low Lake, Neilburg and Unwin-Epping and is situated in the Saskatchewan/Alberta border region near the city of Lloydminster, Saskatchewan. The Corporation’s production in the area is comprised of 12⁰ to 14⁰ API oil from several stacked Cretaceous aged reservoirs in stratigraphic and structural traps, along with Devonian aged carbonate units that are trapped along the subcrop edge. Due to the high porosity and permeability of the reservoir zones, no fracture stimulations are required. At December 31, 2012 the Corporation owned 213 (193.4 net) producing oil wells and 13 (12.4 net) service wells, along with one 100% owned oil battery. In 2012, the Corporation drilled 44 (41.8 net) wells in the area resulting in 43 (40.8 net) oil wells and 1 (1.0 net) service well. Production for 2012 averaged 5,879 boe/d weighted 98% to oil and liquids. The majority of the Corporation’s oil production from the Lloydminster area is gathered and processed at a 100% Crew owned facility.


Development plans in 2013 include the drilling of sixty (60.0 net) heavy oil wells to follow up the exploration and development success of 2012. In addition to the drilling program, Crew plans to recomplete 40 to 60 wells in the area in 2013.