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Operations

Diversified assets. Solid cash flow. Oil-focused operations.

Area Overview

  • Northwest Alberta
    • Northwest Alberta

      Properties

      Peace River Arch

      • Girouxville
      • Mitsue
      • Puskwaskau

      Berland

      Fir

      Kakwa

      Giroux Lake

      • 320 boe/d
      • 35% oil and NGL
      • Non-operated, lower WI
      • Good cash flow
      • Focus:
        • Maintenance area
        • Benefit from steady cash flow
        • Rationalize/swap properties as opportunities arise
  • Central Alberta
    • Central Alberta

      Properties

      Open Lake

      Brazeau

      Westerose

      Willesden Green

      • 1,350 boe/d
      • One of two main focus areas for activity and capital investment
      • 40% oil and NGL
      • Multi-zone production in stacked, medium-depth, Deep Basin-type setting – “vertical resource play”
      • Consistent with team’s professional experience
      • Key property: Open Lake, 100% WI, operated facilities with excess capacity
      • Focus:
        • Zones of interest: Viking, Mannville, Glauconitic, Ostracod, Ellerslie, Rock Creek, Mississippian
        • Multi-zone vertical infill drilling (100% W.I.) for light oil at Open Lake, including Deep Basin zones
        • 12 vertical Ostracod oil locations identified as of spring 2014
          • First well placed on-production January 2014
          • Further drilling throughout H2 2014
        • Participated in three non-operated Glauconitic horizontal wells
        • Multiple near-term vertical well recompletion opportunities
        • Facility optimization/consolidation
        • Assess opportunities for future horizontal drilling
        • Optimize production
  • East Alberta
    • East Alberta

      Properties

      Cache

      Tweedie

      Liege

      Wainwright

      Viking/Kinsella

      Vermilion

      Mannville

      Auburndale

      Wildmere

      • One of two main focus areas
      • 490 boe/d, 9% oil
      • Current production mainly typical W4 Mannville gas
      • Extensive land, numerous wellbores.
      • Main opportunity: horizontal conventional heavy oil
      • Primary focus:
        • Pursue Sparky/Lloydminster formation horizontal oil drilling opportunities
        • Strong Q4 2013 and Q1 2014 successes at Auburndale, Mannville and Wildmere
        • Identified 36-44 gross horizontal drilling locations to date (do not require hydraulic fracturing)
        • Drilling to commence in late Q2 2014
      • Secondary focus: cut costs, optimize wells/facilities, consolidate/rationalize non-core items
  • Red Deer
    • Oberlin/Red Deer

      Properties

      Oberlin

      Twinning

      Chigwell

      Ferrybank

      Joffre

      Gadsby

      • 1,100 boe/d
      • 10% oil and NGL
      • Longer-term potential for CBM and liquids-rich conventional gas under higher gas prices
        • 27 infill drilling locations
        • 35 recompletion candidates
      • Focus:
        • Maintenance
        • Benefit from steady cash flow
        • Optimize production and facilities
        • Infill drilling and recompletion opportunities with higher natural gas prices
  • Medicine Hat
    • Medicine Hat

      Property

      Medicine Hat

      • 650 boe/d
      • Classic shallow gas (400 m depth)
      • Medicine Hat and Second White Specks formations
      • 100% WI
      • Low operating costs due to simple compression/dehydration processing
      • Extensive infill drilling potential with higher gas prices
        • 27 infill drilling locations
        • 101 recompletion candidates
      • Focus:
        • Further reduce costs
        • Well optimization, such as routine swabbing program, to maintain rates
  • South Alberta
    • Southern Alberta

      Property

      Lookout Butte

      • 980 boe/d
      • 3,500-metre-deep, long-RLI pool discovered in 1960s
      • 20% C5+ and NGL (40+ bbls/mmscf)
      • Rundle Formation, Foothills gas, 3% H2S
      • Tied to Shell Waterton plant
      • Site of sold/leased back gas plant to finance recent transaction
      • Focus:
        • Optimize existing production, including reactivating shut-in wells
        • Benefit from steady cash flow
        • Potential for oil-focused well recompletions – Blairmore oil
        • Long-term potential for accelerated pool drainage under higher gas prices
      • Cardium gas potential
  • Crossfield
    • Crossfield

      Properties

      Turner Valley

      Carstairs

      Gadsby

      Garrington

      • 240 boe/d
      • 39% oil and NGL
      • Operated and non-operated production. Some lower-WI unit interests
      • Mix of formations, including deep Turner Valley
      • Focus:
        • Maintenance
        • Benefit from cash flow
        • Consider rationalization

Questfire is pursuing an accelerating program of vertical and horizontal drilling for a range of conventional heavy oil, conventional light oil and multi-zone, liquids-rich gas targets at several of its key properties. The Corporation is also conducting optimization at various producing assets to increase efficiencies and reduce operating costs per unit of production.