HOW BIG, IS pou LAND BaseLAND BASE
Properties Without Attributed Reserves and Expiries As at December 31, 2019, Paramount’s land base, not including lands held by Cavalier Energy, encompassed approximately 3.86 million gross (2.23 million net) acres in Western Canada, plus approximately 180,000 acres of fee simple land. Approximately 3.1 million gross (1.84 million net) acres of this land had no attributed reserves as at December 31, 2019.
Cavalier Energy
Cavalier Energy is a wholly-owned subsidiary of Paramount that was created in 2011 to develop the Company’s oil sands assets. As at December 31, 2019, Cavalier Energy owned approximately 1.345 million gross (1.306 million net) acres of land located primarily in the Athabasca and Peace River oil sands regions of Alberta. Cavalier Energy’s landholdings consist primarily of undeveloped oil sands and carbonate bitumen interests, with some minor interests in lands producing or prospective for conventional natural gas and crude oil. Cavalier’s oil sands and carbonate bitumen lands are prospective for in-situ bitumen recovery but are at the early stages of their evaluation and development. The oil sands and carbonate bitumen lands Paramount Resources Ltd. 2019 Annual Information Form 18 currently have no production and there are no assurances that Cavalier Energy will develop the lands, generate earnings, operate profitably or provide a return on investment in the future.
Other Information
Significant Factors or Uncertainties Relevant to Properties with No Attributed Reserves Paramount’s acreage with no attributed reserves in the Northwest Territories and shale gas acreage in the Liard and Horn River Basins, representing approximately 102,000 (86,000 net) acres, will require significant capital to develop. In addition, the Company may experience operational challenges and higher costs due to the geographic location, weather conditions, formation depths and limited infrastructure in this region. There are no assurances that this acreage will ever be developed and, if it is, whether it will operate profitably or provide a return on investment. For additional information on the Company’s shale gas holdings, see "Narrative Description of the Business – Other Assets". Cavalier Energy’s oil sands and carbonate bitumen acreage with no attributed reserves will also require significant capital to develop. These assets are subject to similar risks as those described under "Risk Factors – Cavalier Energy’s Oil Sands and Carbonate Bitumen Properties", plus additional risks associated with exploration, delineation, establishing technological and commercial feasibility and other steps that would be required to advance these assets to a stage ready for regulatory approvals to be sought and efforts made to secure necessary financing
Reference 2019 Anual Report