Crew Energy Profile
Crew Energy Inc. engages in the acquisition, exploration, development, and production of crude oil, natural gas liquids (NGL) and natural gas in Canada.
The company’s operations primarily focus on the development of its Montney oil, liquids and condensate-rich natural gas assets in northeast British Columbia. In addition, it maintains its heavy oil assets in the Lloydminster area. The northeast British Columbia geographic area is made up of five areas, such as Septimus, West Septimus, (collectively referred to as ‘Greater Septimus’), Groundbirch/Monias, Attachie and Tower.
West Septimus, British Columbia
The West Septimus area is located approximately 21 kilometers southwest of Fort St. John, British Columbia and includes lands west of the Pine River adjacent to the company’s Septimus area. The West Septimus operations include liquids-rich natural gas from the Montney formation, which is a tight siltstone formation that is approximately 300 meters in thickness. It is being developed with extended reach horizontal wells that are completed with multi-stage water-based fracture stimulations. As of December 31, 2020, the company had 84 (82.2 net) producing liquids-rich natural gas wells and one (1.0 net) service well in the area. In 2020, the company drilled twelve (12.0 net) and completed seven (7.0 net) liquids-rich Montney gas wells in the area. Additionally, the company focuses to finish completion operations of six (6.0 net) wells in this area in the first quarter of 2021, with production expected to begin in the second quarter of 2021.
The company also drilled, completed and tied in one (1.0 net) horizontal salt water disposal well in the Cadomin formation in 2020. This well is used to the dispose of water produced at the company’s West Septimus facility and it is also periodically used to dispose of a portion of the water produced from the initial flowback of newly completed Montney wells in the West Septimus field.
During 2018, the company constructed a pipeline system from the West Septimus facility through Groundbirch and into the Saturn meter station on the TransCanada Pipeline System. This project provides the company with physical access to all three major natural gas egress systems transporting natural gas out of Western Canada. In addition, the configuration of this new infrastructure allows the company the ability to begin development of the Groundbirch area by providing access to the West Septimus processing facility.
As of December 31, 2020, the Sproule Report assigned proved plus probable reserves of 57,773 thousand barrels (Mbbl) of NGL and 944,961 million cubic feet (Mmcf) of conventional natural gas to the company’s interests in the West Septimus area. As of December 31, 2020, the company owned 36,402 net acres of land with an average working interest of 88.5% in the area.
Septimus, British Columbia
The Septimus area is located approximately 13 kilometers southwest of Fort St. John in British Columbia. The company’s operations include liquids-rich natural gas from the Montney formation. As of December 31, 2020, the company had an interest in 65 (60.3 net) producing liquids-rich natural gas wells and two (2.0 net) service wells in the area. Production from the Montney is processed through a facility operated by the company and in which it owned a 23% working interest as of December 31, 2020. The company plans to drill eight (8.0 net) liquids-rich gas wells in this area in 2021, all of which are expected to be completed and brought on-stream in late 2021 or early 2022.
As of December 31, 2020, the Sproule Report assigned total proved plus probable reserves of 5,315 Mbbl of light and medium crude oil; and 10,074 Mbbl of NGL along with 358,806 Mmcf of conventional natural gas to the company’s interests in the Septimus area. As of December 31, 2020, the company owned 14,254 net acres of land with an average working interest of 90.8% in this area.
Tower, British Columbia
The Tower area is located approximately 13 kilometers south of Fort St. John, British Columbia and includes lands adjacent to and northeast of Septimus. The company’s operations include oil and liquids-rich solution gas from the Montney formation. In 2020, its production from the area averaged 675 barrel of oil equivalent per day (boe/d) weighted 25.6% to light and medium crude oil (173 barrels per day (bbls/d)), 63.5% to conventional natural gas (2,572 thousand cubic feet per day (mcf/d)) and 10.1% to NGL (68 bbls/d). As of December 31, 2020, the company had eleven (9.7 net) producing oil wells in the area. The company’s gas production in the Tower area is processed through the Septimus gas facility and the oil production is trucked to market from a 100% company owned and operated oil processing facility.
As of December 31, 2020, the Sproule Report assigned proved plus probable reserves of 1,649 Mbbl of light and medium crude oil, 668 Mbbl of NGL and 23,441 million cubic feet (Mmcf) of conventional natural gas to the company’s interests in the Tower area. As of December 31, 2020, the company owned 34,200 net acres of land with an average working interest of 84.1% in the area.
Groundbirch/Monias, British Columbia
The Groundbirch/Monias area is located approximately 35 kilometer (km) southwest of Fort St. John, British Columbia and includes lands adjacent to and southwest of West Septimus. The company’s operations in this area include liquids-rich natural gas production from the Montney, Halfway and Belloy formations. In 2020, the company’s production from this area averaged 1,861 boe/d weighted 93.9% to conventional natural gas (10,485 mcf/d), 2.9% to condensate (54 bbls/d) and 3.3% to other NGLs (61 bbls/d). As of December 31, 2020, the company had ten (9.7 net) producing natural gas wells in the Groundbirch/Monias area.
As of December 31, 2020, the Sproule Report assigned proved plus probable reserves of 11,072 Mbbl of NGL and 368,341 Mmcf of conventional natural gas to the company’s interests in the Groundbirch/Monias area. As of December 31, 2020, the company owned 131,730 net acres of land with an average working interest of 81.0% in the area.
Attachie, British Columbia
The Attachie area is located approximately 59 kilometers west of Fort St. John in British Columbia. The company’s operations target liquids-rich natural gas from the Montney formation. The company plans to drill one (1.0 net) lease retention well in the area in 2021, which would conclude the lease preservation program in the area.
As of December 31, 2020, the Sproule Report assigned proved plus probable reserves of 6,714 Mbbl of NGL and 163,964 Mmcf of conventional natural gas to the company’s interests in the Attachie area. As of December 31, 2020, the company owned 34,605 net acres of land with an average working interest of 96.3% in the area.
Lloydminster, Saskatchewan/Alberta
The Lloydminster area includes the company’s operations at Wildmere, Swimming, Viking-Kinsella, Baldwinton, Forest Bank, Golden Lake, Lashburn West, Low Lake, Lloydminster, Lindbergh, Neilburg and Unwin-Epping; and is situated in the Saskatchewan/Alberta border region near the city of Lloydminster, Saskatchewan. The company’s production in the area includes 12° to 14° American Petroleum Institute oil from various stacked Cretaceous aged reservoirs in stratigraphic and structural traps along with Devonian aged carbonate units that are trapped along the subcrop edge. Development includes conventional vertical and horizontal wells completed for primary and secondary waterflood production from these reservoirs.
As of December 31, 2020, the company owned 68 (60.3 net) producing oil wells and eight (8.0 net) service wells, along with a 100% owned oil battery and various single and multi-well batteries located at individual well sites. In 2020, the company drilled two (2.0 net) and completed two (2.0 net) oil wells in the Lloydminster area. The majority of the company’s oil production from the Lloydminster area is processed at its 100% owned oil battery, which is directly tied into the Manito Pipeline System.
As of December 31, 2020, the Sproule Report assigned proved plus probable reserves of 6,302 Mbbl of heavy crude oil and 180 Mmcf of conventional natural gas to the company’s interests in the Lloydminster area. As of December 31, 2020, the company owned 40,413 net acres of land with an average working interest of 90.5% in the area.
Other Minor Properties
In addition to the foregoing, the company has interests in other minor, primarily non-operated, properties in northeast British Columbia, which contributed, in the aggregate, approximately 132 boe/d of production in 2020. As of December 31, 2020, the company owned two (0.5 net) producing oil wells and 16 (5.8 net) producing gas wells.
Strategy
The key elements of the company's strategy are to adhere to safe and environmentally responsible operations, while remaining committed to sound environmental, social and governance practices, which underpin its fundamental business tenets; value and maintain an entrepreneurial culture to attract and retain high-quality staff; evaluate various opportunities by following a disciplined methodology of integrating technical information with expected economic outcomes and risking the expected economic value of each opportunity according to the existing producing analogs in a particular area; utilize an annual short and long-range planning process with its board of directors assessing performance and setting future direction; develop a long-range transportation and marketing plan to ensure access to market and diversified pricing exposure, where possible, for its natural gas, oil and NGL production; create and maintain a significant inventory of drilling locations; and actively manage its portfolio of assets to take advantage of value-enhancing acquisitions and dispositions when market conditions permit. Part of the company’s ongoing strategy includes securing processing and transportation capacity to ensure its production moves to market over the short and long term.
History
Crew Energy Inc. was founded in 2003. The company was incorporated pursuant to the provisions of the Business Corporations Act (Alberta) in 2003.
