CHAMBERS-FERRIER AREA, ALBERTA
For over fifty years, the oil and gas industry has been aware of the large potential of the Chambers - Ferrier area in the Deep Basin of West Central Alberta. Early exploration history included the discovery of the Cardium formation Ferrier Oil and Gas pools in 1954 and 1956. In the 1970's, exploration continued to move deeper into the basin and included players like Pan American (Amoco), B.P., Apachee, Sulpetro, and start up Mesa Petroleum (lead by founder and Industry icon T. Boone Pickens) and others. In 1973, area drilling resulted in the discovery of the Chambers Elkton A Pool with three wells having 16.7Bcf of original gas in place. Several other wells in the Chambers area tested gas from multiple zones, however tighter reservoirs, the lack of pipeline infrastructure, and a general pullback in the industry in 1974 resulted in a lackluster of focus on the area.
A resurgence of drilling activity in the 1990's included POCO, Prime West, Gulf, North Rock, Burlington, ConocoPhillips, among others. In 2002 EnCana (Baytex) discovered the Ferrier Banff B Pool having over 90 BCF of recoverable reserves. This pool lies one mile to the northeast and adjacent to lands held by Altima. From 2006 through 2011 thirty-nine (42) wells were drilled within a nine Township block surrounding Altima's lands with only two (2) wells abandoned, a success rate of 95%. Sixteen (16) wells are adjacent to or within approximately four (4) kilometers of the Company's property. This drilling includes EnCana's 6 well, 26 BCF, multi-pool discovery adjacent to Altima's holdings on the northwest portion of Chambers.
Today competition is industry wide and includes EnCana Corp (Baytex), Devon Canada Corp, Taqua North, NuVista Energy, Husky Oil Operations, and Conoco Phillips who collectively drilled 33 of the 42 above referenced wells.
Industry investment in the Chambers-Ferrier area is measured in hundreds of millions of dollars. The return on that investment is measured in billions. Since Altima entered the Chambers-Ferrier project in the spring of 2006, over $37,500,000 in direct Altima and partner costs has been invested in the Chambers project. There remains the opportunity at Chambers for Altima and its industry partners to measure rewards in the hundreds of millions, if not, billions of dollars.