Operations

Our business plan is to create sustainable and profitable growth in reserves, production and cash flow in the oil and natural gas industry in the Western Canadian Sedimentary Basin (“WCSB”).

Chinook’s mandate  since inception has been to identify and secure a balanced portfolio of exploration and exploitation opportunities in proven areas that are characterized by competitive fiscal terms, and an abundance of opportunities.

2017 marked a successful year for us as we moved from delineation to exploitation of our Birley/Umbach property. In early 2014, we drilled our first Montney test well at Birley at a time when others were not entirely convinced of its prospectivity. The results of that test well, along with our follow up wells, confirmed the presence of a large Montney resource and established a large drilling inventory for Chinook. Subsequent to our Birley discovery, we began to streamline our business by divesting of our international assets in Tunisia and transacting on all our non-core Alberta assets through either cash dispositions or share transactions.

Growth Catalyst

  • Montney discovery at Birley/Umbach in Northeastern British Columbia
  • Strategic acquisition within the Company’s core areas 

Our Focus Areas

Our focus areas include major properties at Birley/Umbach

Birley/Umbach Area – Montney

Birley/Umbach is comprised of 75 gross (64 net) drilling space units of land and includes a compressor site with a current capacity of 50 mmcf/d.

We believe that our capital program during the last few years which saw us drill and complete 13 (11.23 net) wells on our Birley/Umbach property as well as our on-time completion of our Birley facility expansion to 50 mmcf/d puts us in an excellent position to accelerate activity when commodity prices recover. We have confirmed the resources are there, now our objective will be to extract them efficiently and profitably. To that effect, although we are encouraged about the results of our exploitation program in 2017 and additional delineation work in 2018, we remain cautious on further capital expenditures until such time as commodity prices improve to a more constructive level.

Our four well drilling program during the second half or 2017, were drilled with longer laterals and completed with a new design including more frac stages with less proppant per stage, tighter spacing and using a ‘zipper frac’ technique on parallel well pairs.  We anticipate incorporating this new completion design into our future drilling operations. Early production data indicates that these wells have significantly higher free condensate gas ratios which were up 90% compared to the IP30 rates from previously drilled offsetting wells.

During the first quarter of 2018, we drilled two (2.0 net) vertical exploratory wells in the Birley/Umbach. These wells delineated 17 undrilled contiguous sections of 100% owned Montney rights which are located eight kilometres from the nearest well drilled into the Montney. The reservoir quality throughout the entire 235 metre thick Montney zone was evaluated with these wells.