Oil and Natural Gas Property
The Petrolia East property is located in Lambton County next to the town of Petrolia, which is approximately 10 miles southeast of Sarnia in southwestern Ontario. The property was acquired from CanEnerco Limited in 2001. Torque holds a 100% operated working interest in approximately 800 acres of land. These lands include all petroleum and natural gas rights from surface to basement. The property is developed with four producing oil wells and one potential oil well. Production is primarily from the Middle Silurian aged Guelph and A-2 Formation in the Michigan Basin. Current production from the property is averaging 44 bbl/day oil and 33 Mcf/day solution gas from the 4 wells. The gas is currently flared.
The reefal carbonates of the Guelph formation in southern Ontario have a long history of hydrocarbon exploration and production. The Petrolia field is one of the oldest with the first commercial oil production established at the end of the 19th century. Although the wells at Petrolia East are producing from the Guelph Formation, as are the wells at Corey East, each of the reefs has a different geological setting and trapping mechanism.
The reef is basically a mud mound with scattered fossils. The mud matrix of the build-up has been dolomitized and the fossils have either been leached out or pseudo-morphed. Even after dolomitization, the mud matrix remained tight and impermeable and the internal fossil porosity remained isolated. However, at the time of deposition when the mound was exposed as an island, it was subjected to chemical weathering and the rock was penetrated by large vertical fractures due to mineral leaching from acid rainwater. In effect, this exposure and karsting changed the reef from being very poorly productive to having significant porosity and permeability. Unlike Corey East, which is capped with an algal mat to trap hydrocarbons, the Petrolia East reef appears to have been exposed at that time and as a result no anhydrite cap was formed. Instead, it was capped by a detrital debris field.
The Corey East property is located within Enniskillen Township in Lambton County just 3 miles south of Petrolia, Ontario. Torque holds a 94.463% operated working interest in approximately 100 gross acres of developed land. These lands include all petroleum and natural gas rights from surface to basement. The property includes three producing oil wells with production primarily from the Middle Silurian Guelph Formation and one potential oil well. Current production from the property is averaging 26 bbl/day oil and 26 Mcf/day solution gas net to Torque. The gas is presently flared.
Ram Petroleums Limited discovered the Corey East Pool in February 1978. Ram #61 Enniskillen 2-15-VI was the first well completed in the Guelph reef and was located on the basis of 2D seismic. A second well was drilled by Ram and completed as an oil producer in October 1990. Ram #101 Enniskillen 1-15-VI was drilled as an offset to Ram #61 and is located on the crest of the reef. In 1996, CanEnerco Limited purchased the lands from Ram and in 1997 drilled the third well in this pool. CanEnerco #2 Enniskillen 2-15-VI was also completed as an oil producer. Kinetic #2 Enniskillen 2-15-VI was drilled in 2001 and remains as a potential oil producer.
The Dover East property is located adjacent to Lake St. Clair in Kent County, approximately 5 miles west of Chatham in southern Ontario. Torque holds a 50% working interest in the production spacing units, battery and gas plant facilities associated with the wells on the property. These include 7 oil and solution gas wells, 3 oil wells, 7 producing gas wells, 1 observation and 1 injection well. Production is primarily from the Middle Ordovician Black River and Trenton groups. Current net production from the property is averaging 10 bbl/day oil and 97 Mcf/day gas from the 17 wells.
The Dover East property is currently operated by Liberty Oil & Gas Ltd.
The Dover 7-5-VE Field was discovered in 1982 by the Rowe Ram #1 Dover 7-5-VE well, which was drilled on a synclinal feature on a 2D seismic line. Wells drilled to the Ordovician are usually located on such seismic anomalies where there is commonly a structural depression over the dolomitized zone. Seismic information combined with development drilling has extended the Dover Field to the southeast and also to the west.
Reserves of all producing properties for the period ending November 30, 2009 are filed on SEDAR @ www.sedar.com
