Alberta - Saskatchewan
Exploration, development and production of Oil and Natural Gas in Western Canada.
Ivory Energy Inc., Calgary, AB. TSX.V : IV, is actively engaged in the exploration, development and production of oil and natural gas in Western Canada. The company is led by an experienced management team with a successful track record in oil and gas exploration, and financing. Ivory intends to focus on Saskatchewan heavy oil properties and its natural gas properties at Obed, Alberta and increase oil and gas production through the careful management of existing wells, re-completions, workovers and infill drilling.
Ivory has positioned itself with excellent stable heavy oil resources in Saskatchewan and high quality natural gas property in Alberta.
Junior exploration and development company with focused production & drilling opportunities in Alberta and Saskatchewan
Diversified assets in heavy oil and natural gas
Developing low risk heavy oil resource with steady growth from exploitation of a proven reserve in Saskatchewan and exploration and development of natural gas resource in Alberta.
New development program will raise production to 1,100 – 1,300 boepd by end of 2008.
Ivory's Competitive Edge:
1) Management: Has a successful track record and decades of experience developing projects and financing acquisitions.
2) Properties: Long-life, heavy oil and gas properties in Saskatchewan and Alberta. Rapid increase in daily production and reserves by low-risk development program in Alberta and Saskatchewan.
3) Strategy: Focus on increasing production and cash flow through primary and secondary development programs on existing lands.
Saskatchewan Property Description
Ivory's Saskatchewan heavy oil properties are located approximately 5 miles south of Lloydminster, Saskatchewan. The Silverdale property, the Furness property, and the Freemont property are the main oil producers. Minor production is from the Lloydminster properties on the Alberta side and Epping, Saskatchewan. Ivory has a total of 13.1 sections (8,360 acres) in its heavy oil properties. Saskatchewan is an attractive jurisdiction for oil and gas development, with a favourable royalty structure in place. These properties have long life reserves and Ivory's properties have many infill and stepout development wells to be drilled with predictable and repeatable results.
The properties are 100% owned and operated.
Ivory participated in the discovery of a new Natural Gas field at Obed, Alberta. The discovery gas well was drilled, completed and tested in the first quarter of 2008. It was offset by a successful development gas well in the second quarter. Ivory also participated in building a six mile, six inch gas pipeline to a natural gas processing plant that tied in these two wells. Ivory has 1,920 acres of land in the Obed area.
The initial discovery well was drilled and completed in the first quarter of 2008. A productive zone was tested and flowed 11.3 mmcf of sweet natural gas during a 48 hour test period (averaging 5.46 mmcfpd) with peak flow rates of 10.5 mmcfpd. For the duration of the test there was no discernible pressure depletion recorded. The gas well was placed on production in September and is producing at approximately 7.5 mmcfpd (1,242 boepd) and approximately 75 bblpd of natural gas liquids. Ivory has a 14% working interest in this discovery well and the six mile pipeline.
Ivory participated in drilling and completion of a successful development well offsetting and in the same gas zone as the discovery well. During drilling, a gas kick was encountered and the resulting gas kick was flared (24 meters high) before the mud was weighted up to kill the gas kick. The productive gas zone was tested for 24 hours and flowed 8.2 mmcfpd (1,366 boepd) of sweet natural gas with peak flow rates of 10 mmcfpd and 80 bblpd of natural gas liquids. Wellhead flowing pressures remained constant during the flow test and were 36% higher than the wellhead producing pressure of the discovery gas well. At the conclusion of the test period, the shut in wellhead pressure returned to 90% of the initial wellhead pressure within 40 minutes. This is indicative of a significant gas reserve in this pool.
This gas well was placed on production in November and is producing at approximately 8.2 mmcfpd (1,366 boepd). Ivory has a 20% working interest in this development gas well.