New Assets Added to the Fold
On October 17, 2019, Pieridae announced it had closed its deal to buy all of Shell Canada’s Foothills assets, including 28,634 BOE/d of production:
- 119 MMcf/d of natural gas
- 5,656 bbl/d of natural gas liquids
- 3,163 bbl/d of condensate and light oil
Pieridae also acquired three deep cut, sour gas processing plants: Jumping Pound, Caroline and Waterton, with a combined capacity of 750 MMcf/d. The three plants currently operate with 420 MMcf/d of spare capacity.
Finally, Pieridae also purchased a 14 per cent interest in the Shantz sulphur forming plant, and 1,700 kilometres of pipelines.
The acquisition helps the company secure the majority of the gas needed to supply the first train or facility for the Goldboro LNG Project, and Pieridae becomes the largest Foothills producer in Canada.
Jumping Pound Gas Complex
Opened in 1951, the Jumping Pound Complex is located about 33 km west of Calgary near Cochrane, Alberta.
It produces natural gas (methane), ethane, propane, butane, condensate and sulphur.
The methane is primarily sold via two separate pipeline systems into the Alberta market. It is used mostly for heating and producing electricity.
Natural gas liquids (NGL) include propane, butane and ethane. Propane is shipped via tank trucks and rail cars and used for heating and fuel to Western Canadian markets. Butane is shipped via rail and used for refinery and chemical feedstock in North America. Ethane is shipped by pipeline to petrochemical plants where it is used as a "building block" for a variety of chemicals and plastics.
Condensate is a petroleum liquid similar to unrefined gasoline. It is shipped by pipeline to refineries as a feedstock to convert crude oil into various finished petroleum products, or for use as a diluent that thins heavy crude oil so that it will pump or move down a pipeline.
Sulphur is used to make a wide range of products from fertilizers to fabric to pharmaceuticals.
The Jumping Pound gas field was discovered in 1944. Completion of four development wells showed there were sufficient gas reserves to warrant building a gas plant.
Caroline Gas Complex
The Caroline Complex includes the gas field, 10 operating wells, two operating compressor stations, a major gas processing plant and a sulphur forming and storage facility.
Located 170 km northwest of Calgary near Caroline, Alberta, the Caroline Complex started operating in 1993 and produces sales gas (methane), natural gas liquids, condensate and sulphur.
The methane is shipped by pipeline to markets in Eastern Canada and the United States. It is used primarily for heating and electrical generation.
Natural gas liquids (NGL) include propane, butane and ethane. Propane is sold to domestic and U.S. distributors for heating, crop drying, auto fuel and petrochemical feedstock. Butane is shipped to refineries where it is used as a gasoline blending component and to petrochemical plants for use as a feedstock. Ethane is shipped by pipeline to petrochemical plants where it is used as a "building block" for a variety of chemicals and plastics.
Condensate is a petroleum liquid similar to unrefined gasoline. It is shipped by pipeline to refineries as a feedstock to convert crude oil into various finished petroleum products, or for use as a diluent that thins the heavy crude oil so that it will pump or move through a pipeline.
Sulphur is pipelined 41 km to the Shantz Sulphur Forming facility where it is formed into pellets and transported by rail to Vancouver for shipment to international markets. Sulphur is used to make a wide range of products from fertilizers to fabric to pharmaceuticals.
Waterton Gas Complex
The Waterton Complex celebrated its 50th anniversary in 2012, and currently produces natural gas (methane), ethane, propane, butane, condensate and sulphur.
Located about 30 kilometres southwest of Pincher Creek in southern Alberta, Waterton’s methane is shipped by pipeline to markets in Eastern Canada and the United States. It is used primarily for heating and electrical generation.
Natural gas liquids (NGL) include propane, butane and ethane. Propane is sold to domestic and United States distributors for heating, crop drying, auto fuel and petrochemical feedstock. Butane is shipped to refineries where it is used as a gasoline blending component and as a fuel in products such as butane lighters and curling irons. Ethane is shipped by pipeline to petrochemical plants where it is used as a "building block" for a variety of chemicals and plastics.
Condensate is a petroleum liquid similar to unrefined gasoline. It is shipped by pipeline to refineries as a feedstock to convert crude oil into various finished petroleum products, or for use as a diluent that thins heavy crude oil so that it will pump or move down a pipeline.
Sulphur is used to make a wide range of products from fertilizers to fabric to pharmaceuticals.
British Columbia
British Columbia Foothills
The Ojay area is located on the border of Alberta, approximately 100 kms southwest of Grande Prairie, Alberta. As of December 31, 2018, Pieridae had an interest in 27,012 gross (19,342 net) acres in this area. The company has a 40% working interest in a dehydration and compression station and various working interests in gas gathering systems. After compression and dehydration, gas produced from this location flows into Alberta and is processed at the Narraway Gas Plant.
Northern British Columbia
The Deep Basin Sierra and Ekwan areas are roughly 45km east of Fort Nelson, British Columbia stretching 85 km east towards the Alberta border and were acquired as part of the 2017 acquisition from Husky. As of December 31, 2018, Pieridae had an interest in 236,899 (212,155 net) acres in this area. The Sierra asset consists of ~25mmcf/d of production from the Pine Point Formation that is currently shut-in due to infrastructure constraints. Ekwan is currently producing ~7.5mmcf/d from the Jean Marie Formation into TC Energy's Nova system.
Alberta
Northern Alberta Foothills
This area starts at the Alberta and British Columbia border approximately 100 kms southwest of Grande Prairie, Alberta and continues southeast to approximately 30 kms east of Grande Cache, Alberta. As of December 31, 2018, Pieridae had 74% average working interest in 296,280 gross (220,212 net) acres in this area. The company has four dehydrators, various compressor stations and gas gathering systems with working interests between 28% and 59%. The Corporation also has a 7.5% interest in the 135 MMcf/d Narraway Gas Plant and a 35% interest in the 25 MMcf/d Copton Gas Plant.
Central Alberta Foothills
This area consists of lands and assets acquired from Husky in 2017 and spans from from Hinton, Alberta to Stolberg Alberta west of Rocky Mountain House. The area includes existing gas production as well as oil and liquids-rich opportunities. As of December 31, 2018, Pieridae had an interest in 298,901 gross (180,938 net) acres within this area. Along with significant land holdings, the company has an interest in several large dehydrators and compressors along with the pipeline infrastructure, allowing it to transport production to the Ram River Gas Plant and NOVA sales meter without any third party disruption.
Southern Alberta Foothills
The Southern Alberta Foothills asset extends from the town of Rocky Mountain House, South to Lundbreck, near the Crowsnest Pass. As of December 31, 2018, Pieridae had an interest in 8,803 gross (5,423 net) acres representing a 52% average working interest. It includes ownership in approximately 140 km of pipeline, compression, and dehydration in the Burnt Timber Raw Gas Gathering System and the surrounding gas fields, as well as a small percentage ownership in numerous non-operated sites (less than 20%) at Benjamin, Jumping Pound, Moose Mountain and further south to Lundbreck.
Quebec
On May 6, 2008, Pieridae acquired properties in Gaspé and Gastonguay from Junex over an area of 6,043 km2. Any future production is subject to royalties varying from 0.5 percent to 2.5 percent. Also, the company and Junex agreed to become 50/50 partners in a block of licences covering an approximate area of 291 km2, with Junex acting as operator. A second agreement was also signed that defined the Haldimand Project, a development area of 9 km2 around Haldimand N°1 well, giving Pieridae and Junex a 45 percent interest each, with Gastem holding the remaining 10 percent. Some licences for these properties are subject to royalties of 5 percent.
Bourque Project
The Bourque project, which was launched in 2007, is located on the northwestern part of the Gaspé property, 30 km east of Murdochville and 50 km west of the Town of Gaspé. There are four licences related to this property. Pieridae's owns 51% of the project, with Ressources Québec Inc. and TUGLIQ Energy Corp. owning 45% and 4% respectively. In 2016, the company drilled two horizontal wells in the Forillon Formation at Bourque and confirmed a light tight oil reservoir along with gas and natural gas liquids. Sproule Associates, an independent qualified reserves evaluator has updated their initial assessments of the prospective and contingent resources present and estimate a Total Petroleum Initially in Place (TPIIP) of 827,000 Mbbls (update: December 31, 2018). The two horizontal wells at Bourque are awaiting stimulation and production testing.
