Headwater Exploration Profile
Headwater Exploration Inc., a junior resource company, engages in the exploration for, development of, and production of petroleum and natural gas in the Western Canadian Sedimentary Basin and onshore in New Brunswick.
The company has natural gas production and reserves in the McCully Field near Sussex, New Brunswick, and a shale gas prospect in New Brunswick.
The company focuses on the exploration and development in the Marten Hills area, as well as expanding its operations to include resource exploration and development in other areas of the Western Canadian Sedimentary Basin.
Primary Properties
Marten Hills, Alberta
The Marten Hills area is located approximately 250 kilometres north of Edmonton, Alberta; and targets conventional heavy oil from the Clearwater formation. The company’s interests in the Marten Hills area consists of approximately 189,798 net acres, including approximately 172,800 acres or 270 net sections of Clearwater rights. The company also acquired approximately 2,800 barrels per day of heavy oil production.
The company owns 100% of Cenovus Energy Inc.’s (Cenovus’) assets in the Marten Hills area of Alberta (the ‘Acquired Assets’). The Acquired Assets included 17 net producing wells, 2 net non-producing wells and 4 multi-well batteries. The Acquired Assets contributed 246 barrels per day of heavy oil production for the year ended December 31, 2020.
McCully Field
The McCully Field, located approximately 12 kilometers northeast of Sussex, New Brunswick, includes natural gas production from the Hiram Brook formation, a conventional tight sandstone, and a portion of the Frederick Brook shale, an unconventional shale resource.
The company’s interests in the McCully Field consist of the following petroleum and natural gas leases:
100% working interest in lease number 06-01 (40,930 acres).
50% working interest in lease number 06-02 (3,561 gross acres and 1,780 net acres).
50% working interest in lease number 09-01 (36,531 gross acres and 18,265 net acres held jointly with Nutrien Ltd.).
100% working interest in lease number 13-02C (135,920 gross acres).
As of December 31, 2020, the company drilled 39 wells in the McCully Field, all of which had encountered natural gas.
In 2020, the principal property that the company derived most of its production from was the McCully Field. The gross working interest production from the McCully Field in 2020 was 3.8 MMcf/d (million cubic feet per day) of natural gas and 3 Bbls/d (barrels per day) of natural gas liquids.
Oil and Gas Wells
All of the wells in which the company has an interest are located in the province of Alberta and onshore in the province of New Brunswick.
Reserves
As of December 31, 2020, the company had gross proved plus probable reserves of 9.3 MMboe (1,000,000 barrels of oil equivalent) of oil and natural gas reserves within the Marten Hills area.
Business Strategy
The company’s strategy is to focus on asset quality, explore undeveloped lands through drilling, prioritize ESG, and plan to strategically develop its Marten Hills assets through implementation of enhanced oil recovery techniques, including waterfloods and potentially polymer floods.
Seasonality
The company shuts-in its production from the McCully Field in the summer months and only produces in the winter months when the prices are higher.
History
The company was formerly known as Corridor Resources Inc. and changed its name to Headwater Exploration Inc. in March 2020.
