--> Strategies for Success in Unconventional Plays With Examples From the Montney Formation in Western Canada

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Strategies for Success in Unconventional Plays With Examples From the Montney Formation in Western Canada

Abstract

The Lower Triassic Montney Formation in northwest Alberta and northeastern British Columbia, Canada, is one of the most significant unconventional plays currently being pursued in North America. Nearly 4Bcf per day have been produced from this play which represents nearly a quarter of Canada's natural gas production. The aerial extent, depositional environments, variability in depth, distribution of hydrocarbons; as well as ease of extraction, geographical and political location and access to markets all provide challenges that can differentiate success from failure particularly in a low price environment. Success is not solely determined by the volume of resource; identifying and understanding the impact of other considerations in the discovery, extraction and marketing of the resource, all play a part in the success of a venture Deloitte's Resource Evaluation and Advisory practice has had the opportunity to observe and analyze developments in the Montney for many companies as the play has evolved. This has enabled us to use our own internal geological interpretation and analytics derived from publicly available data to better identify key risks and success strategies. The same techniques can be used to evaluate any of the other unconventional plays in Canada and the United States. This work provides unbiased qualitative and quantitative data for comparing opportunities within a specific formation, between different formations or compare expectations with results. In turn this information can be used to high-grade opportunities technically and economically for both internal purposes and for acquisition and divestiture decisions.