STRATEGY

  • Resource focus = scale and repeatability
  • High capital efficiencies
  • Operated and high working interest
  • World class Montney resource

LAND

  • Significant contiguous land position
    • 826,400 net acres of land
    • 72% undeveloped

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Operations Overview

Crew's operations are focused in three main operating areas: our core Montney acreage in Northeast British Columbia; our Lloydminster heavy oil property in Alberta / Saskatchewan; and our Princess medium oil property in Alberta. Our 2014 capital expenditure budget is $285 million and will be focused primarily on continued Montney development of our liquids rich natural gas asset at Septimus, and our light oil weighted asset at Tower, BC. This program is designed to provide a platform for long term, profitable corporate growth, and further delineate Crew's northeast British Columbia Montney resource. We will also be well positioned to begin the next phase of infrastructure construction required to support continued production growth from our Montney lands.

Princess, Alberta

Our Princess area is comprised of Crew controlled freehold and Crown land in the Tilley, West Tide Lake and Alderson areas directly south of Brooks, Alberta. Production from Princess is characterized by 22⁰ to 26⁰ API medium gravity oil as well as natural gas from the Mississippian aged Pekisko and Cretaceous aged Mannville formations.

At year-end 2013, Crew had 308,036 net acres of land with an average working interest of 90% at Princess, and owned 234 (233.3 net) producing oil wells and 36 (35.1 net) service wells in the area along with three 100% owned oil batteries and associated fluid gathering infrastructure. Production at Princess averaged 5,116 boe/d in 2013 weighted approximately 78% to medium gravity oil and associated liquids. Proved plus probable reserves in Princess at year end 2013 totaled 19,726 Mbbl of oil and NGLs and 17,789 Mmcf of natural gas.

Crew continues to seek opportunities to maximize the value of our Princess asset, and our 2014 capital program will be focused on development of Mannville aged formations with 16 (16.0 net) horizontal wells planned for the year targeting both the Sunburst and Detrital formations. In addition, we will continue to optimize the performance of the existing 11 Pekisko waterfloods by converting an additional four wells to water injection.

Montney Assets - Northeast BC

Our Montney area assets include Septimus, Tower, Groundbirch, Portage and Attachie and are situated south and west of Fort St. John, BC. Our operations include liquids rich natural gas and light oil production from the siltstone Montney formation. At up to 300 metres thick, the Montney is developed with long-reach horizontal wells, completed with water-based fracture stimulations of up to 30 stages. As of year-end 2013, Crew owned 323,070 net acres of land with an average working interest of 79% in this area, and had an interest in 42 (41.6 net) producing natural gas wells and three (1.7 net) oil wells in the area. In late March 2014, we added to our Septimus and Groundbirch assets with two purchases of approximately 75 sections of highly prospective Montney rights for approximately $105 million. The acquired assets came with production of approximately 1,400 boe per day (98% natural gas) of mostly non-Montney production, total proved reserves of 4.7 million boe (94% natural gas), total proved plus probable reserves of 8.5 million boe (93% natural gas), and underutilized strategic infrastructure consisting of 130 kilometers of pipelines and over 6,200 horsepower of field compression.

Our Montney assets produced just over 7,800 boe/d in 2013 (84% natural gas) and production at the end of the first quarter 2014 is approximately 10,500 boe per day (82% natural gas). All Montney production is processed through a Crew operated facility that is owned by third parties. Crew’s proved plus probable reserves at December 31, 2013, without factoring in the reserves added in the 2014 acquisition, totaled approximately 15,057 Mbbl of oil and natural gas liquids (“NGLs”) and 504,976 Mmcf of natural gas as assigned within the year-end 2013 Sproule Report. An independent resource study was completed by Sproule Associates Ltd. effective April 30, 2014 which assessed Crew’s Montney land to hold approximately 109 Trillion Cubic Feet Equivalent ("TCFE") of Total Petroleum Initially in Place (“TPIIP”) and Contingent Resource of 5.0 TCFE.

Our 2014 capital plans for the Montney include drilling 31 wells targeting liquids rich natural gas and light oil. We will continue to focus on cost reduction initiatives by optimizing capital efficiencies through increased use of multi-well pad drilling and modified completion techniques. The Company has begun procurement of the equipment for the planned second 60 mmcf per gas processing facility at Septimus which is anticipated to be operational by mid-2015.

Lloydminster, Alberta/Saskatchewan

Crew’s Lloydminster asset includes the operating areas of 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. Production from the area is comprised of 12º to 14º API heavy oil, which is conventionally produced from several stacked Cretaceous aged reservoirs in stratigraphic and structural traps, along with Devonian aged carbonate units that are trapped along the subcrop edge. As of year-end 2013 in Lloydminster, Crew owned 97,219 net acres of land with an average working interest of 94%.

Crew had 321 (280.7 net) producing oil wells and 10 (8.8 net) service wells at the end of 2013, along with one 100% owned oil battery and numerous single and multi-well batteries located at individual pad sites. In addition, the company owns 13 water disposal sites to process water from local Crew owned and operated wells. Our Lloydminster assets produced close to 6,100 boe/d in 2013 weighted 99% to oil and liquids, with the majority of the oil production being gathered and processed at a facility owned 100% by Crew. Crew’s proved plus probable reserves in Lloydminster totaled 12,452 mbbl of oil and NGLs plus 593 mmcf of natural gas as assigned within the year-end 2013 Sproule Report.

Our 2014 capital plans for this area include the drilling of 25 (25.0 net) heavy oil wells to follow up the exploration and development success of 2013.