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Landsale - very interesting

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Interest In NW Alberta And Exshaw/Bakken Fuel Alberta April 6 Land Sale
By Richard Macedo
Alberta kicked off its first land sale of fiscal 2011/2012 on Wednesday with a $115.8 million land sale, fueled once again by licences south of Grande Prairie and also several parcels near Lethbridge, which appears to be a continued chase for Exshaw/Alberta Bakken oil.
This week's sale featured 233,431 hectares exchanging hands at an average of $496.13 per hectare. After six sales so far this calendar year, $776.6 million has filled the provincial treasury on 1.4 million hectares at an average price of $573.14. To the same point last year, the province had collected $567.1 million in bonus bids for just over a million hectares at an average price of $559.26 per hectare.
Highlights included a sale high bonus bid of $17.9 million by Scott Land & Lease Ltd. for three tracts and several parcels at 61-24W5 and 60-24W5. The broker paid an average of $8,735 per hectare for the 2,048-hectare parcel, also a land sale high. An adjacent nine parcels from 60-26W5 to 60-27W5 combined for total bonus bids of $12.5 million.

Bulletin records show that on March 10, ConnocoPhillips Canada Resources Corp. rig released a directional development gas well in the Wanyandie area at surface location 16-10-60-27W5 to a total depth of 3,328 metres with the Cadomin formation listed as the total depth zone. On Feb. 24, the company rig released a development vertical gas well in the Leland area at surface location 05-33-60-26W5 to a total depth of 3,036 metres with the Cadomin also listed as the total depth zone.
Another five parcels around 61-25W5 and 62-23W5 combined for total bids of $8.7 million. Bulletin records show Copper Creek Petroleum Inc. licenced a horizontal development oil well on March 4 in the Waskahigan area at surface location 01-32-062-24W5 with the Dunvegan formation listed as the total depth zone to a projected depth of 2,400 metres.
Meanwhile, 16 lease parcels in the area around 06-26W4 and 09-24W4 west of Lethbridge combined for total bonus bids of $14.9 million.
Bidding under its own name, Argosy Energy Inc. picked up two leases in the area, each totaling 256 hectares. The company picked up section 16 at 09-24W4 for $1.6 million, which worked out to $6,377 on a per hectare basis. Argosy also acquired the rights to section 18, paying a bonus of $1.4 million at an average of $5,377.
Bulletin records show that on March 29, a well was spudded in the Pearce area at surface location 02-20-09-24W4. The new pool wildcat horizontal oil well was licenced under broker Canadian Coastal Resources Ltd. with the Big Valley formation listed as the total depth zone to a planned depth of 3,793 metres.
To the north, Nexen Inc. onMarch 31 licenced a new pool wildcat in the Claresholm area at surface location 12-12-12-25W4 with the Wabamun group listed as the total depth zone with the projected depth set at 3,520 metres. The planned horizontal lists oil as the objective.
The company spud a horizontal new field wildcat in the Keho area on March 18 at surface location 01-06-11-24W4 with a projected depth of 4,100 metres and the Wabamun listed as the total depth zone and oil as the objective.
"We think it is quite likely a continued chase for the Exshaw/Alberta Bakken play," said Gordon Tait of BMO Capital Markets. "There could be a Second White Specks play in there but it does sort of, in our view, reaffirm interest in that area."
A report this month by BMOnoted that the Alberta Bakken petroleum system is an emerging unconventional tight oil resource play in southwestern Alberta and northwestern Montana consisting of three potential reservoir zones: Big Valley/Stettler carbonates, Middle Bakken/Exshaw dolomitic siltstones and overlying Basal Banff carbonates.
A total of 59 wells, 32 in Alberta and 27 in Montana, have either been drilled or licenced where the primary target has been the Alberta Bakken petroleum system, according to BMO.
Companies with large established land positions include Crescent Point Energy Corp., Shell Canada, Murphy Oil Limited, Bowood Energy Inc./Legacy Oil + Gas Inc., Argosy, Nexen Inc., Rosetta Resources Inc. and Newfield Exploration Company.
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