Alberta light tight oil
Shell is producing light tight oil (LTO) from the Duvernay and Montney formations in north-western Alberta. It has a premier position in the Duvernay liquids play.
Shell’s operations in the Duvernay formation are focused on the Fox Creek (Kaybob) and Rocky Mountain House (Willesden Green) areas, and in the Montney formation (Gold Creek) near Grande Prairie, Alberta. Since spudding its first well in 2011, Shell has been steadily growing its premier position in the Duvernay to more than 365,000 net acres and 93,000 net acres in the Montney formation. Shell’s production in these areas ties into existing Shell-owned and third-party processing facilities. Shell employs approximately 350 staff and contractors to support these operations.
Shell is actively working in the Fox Creek Duvernay area, where select areas of its acreage are being developed with multi-well pads. In other areas, where Shell needs to better understand the resource, we continue to appraise and drill exploration wells. Since 2011, Shell has drilled ~120 wells in the Fox Creek area and is currently producing approximately 20,000 barrels of equivalent per day (boe/d). We continue to develop the Fox Creek area and have plans for a 2-rig program in 2018.
Meanwhile, we are conducting appraisal drilling in the Willesden Green Duvernay play, producing approximately 3,000 boe/d from ~20 wells. Finally, Shell is engaged in drilling in the Gold Creek area to the south of Grande Prairie, producing approximately 5,500 boe/d from ~30 wells. Shell continues to seek opportunities to grow its land base in core areas to further optimize its portfolio.
|Key Data (2017)||Value|
|Net Acreage||458,000 net acres|
|Type of Asset||Liquids Rich|
Shell puts the safety of its staff, contractors and communities first, and will not pursue operations in the Duvernay and Montney if they cannot be conducted in a safe and environmentally responsible manner. In our operations, we are committed to Goal Zero – no harm and no leaks. We have stringent safety standards in place covering personal, process and transport safety and expect all our employees and contractors to meet these standards. We work relentlessly to share best practices, train our staff and strengthen our safety culture. Any safety incidents or near-miss events are thoroughly investigated, with lessons identified and communicated to staff/contractors, and, as appropriate, additional mitigations are put in place. Along with commercial and production indicators, Shell’s leadership constantly monitors safety performance across our sites in the Duvernay and Montney.
Shell implements its own industry leading Onshore Operating Principles across its shales portfolio. These principles cover safety and well integrity, air quality, water protection and use, land use and engagement with local communities. These principles are designed to manage or mitigate impacts related to our operations. For several years, Shell has been taking steps to reduce its overall fresh water footprint and minimize impact to other water users in north-western Alberta. For example, in 2013, Shell signed an exclusive long-term deal with the municipality of Fox Creek to use the town’s treated waste water for hydraulic fracturing. In return, Shell funded the engineering and design to upgrade the town’s reclaimed water facilities. In 2017, approximately 25% of Shell’s water demand in its Fox Creek operations was met by alternative (non-fresh) water sources.
Shell supports a wide range of social investment programs in its Alberta Light Tight Oil communities. Over the past two years, we have spent half a million dollars in these communities, focusing on community development, education, environment, health, safety, community skills and enterprise development. Here are a few examples of the contributions Shell has made in the community:
- Shell donated $25,000 toward the Town of Fox Creek’s Community Comprehensive Plan (CCP). This plan set out a long-term vision for development and growth in Fox Creek.
- Shell donated $40,000 to the Fox Creek Employment Centre to support local youth programming.
- Shell funded $300,000 to Northern Lake College (NLC) for the coordination of a reclamation project with a First Nation community within its operations.
- Shell donated over $55,000 to Fox Creek fire department for the purchase of new firefighting equipment.
We closely engage communities and seek community input for our decision-making process. In particular, we work to strengthen our relationships with First Nations groups and include them in our operations whenever possible. For example, we provide opportunities for local First Nations, trappers and community members to visit our sites before construction to identify plant species or any traditionally sensitive landscapes that Shell should seek to avoid during its construction. During operations, we conduct on-going consultation with First Nations groups and address their concerns. We also have a community feedback mechanism in place. We work with local First Nations to incorporate their traditional knowledge into our reclamation practices.
Asset Contact Information
Community Feedback Number: 1-855-723-3193