Mega Prospect ( TWP 101-102, Rge 9-10W6)

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Mega Prospect ( TWP 101-102, Rge 9-10W6)
Taylor Hill Exploration Ltd. (“Taylor Hill”) has a 100% interest in a large block of land (26,880
acres or 42 sections), located at Twp. 101-102, Rge. 9-10W6 which has multi-zone potential. The
target with the largest “potential resource” on the block is the Mississippian- Debolt Formation
which could have a significant volume of oil-in-place (260 MM Bbls). In addition to the Debolt
potential exists in the Muskwa for Shale gas and the Keg River for gas and light oil.
(Figure 1- Mississippian Debolt)
Taylor Hill sees potential for a large accumulation of medium gravity oil in the Debolt Formation
which may be developed through horizontal drilling and could result in a significant oil resource.
Subsurface geological mapping (see Figure 1) suggests that the Debolt could contain a major
accumulation of 24 degree oil (based on an analysis in the 2-24-101-9W6 well) at a depth of 860
meters covering 20,480 acres (32 sections). The Gross Unrisked Petroleum Initially-in Place (PIIP)
under Taylor Hill’s lands could be 260 Million Bbls using the Lower Debolt’s average reservoir
characteristics (20% SW, 15 feet pay, 18% porosity) .
(Figure 2- Debolt Log showing possible 6.0 Meters Debolt oil pay)
Three wells tested free oil in the potential reservoir during the completion operations prior to
acidization of the zone. It is believed that all wells were drilled with the primary objective being
gas. Prior to the application of Horizontal drilling the resource may have been considered noncommercial. Recently, to the east at Haro (Twp 100-101, Rge 4-5W6), Pace has been developing
22 degree oil in the Pekisko Fm. using horizontal wells. Recent public data by Pace suggests that
the company believes the PIIP is 1.16 Billion Bbls over 111 sections. They have 3-600 locations
which could have rates of up to 125 Bopd and reserves of 100,000 Bbls per well .
(Figure 3- 2-36-101-5w6 Pace’s Pekisko Horizontal Well production profile)
Taylor Hill feels that the commercial potential for oil in the Debolt Fm. in the area could be
better than in the Pekisko Fm. in the area due to:
1.) The gas cap has not been depleted. At Haro the Pekisko reservoir, where Pace is active, has
produced 4.1 BCF. The Debolt at Mega has produced 3.2 BCF.
2.) The reservoir may be better quality in the Lower Debolt. The Pekisko is notorious for lateral
variation.
3.) The water leg is further removed from the oil reservoir in the Debolt resulting in lower
water cuts. The zone is thinner and the underlying water will not be present in a large part
of the oil leg in most wellbores. Water “fingering” is less likely to occur.
In addition to the Debolt, a deeper light oil prospect exists in the Keg River on the lands which
requires seismic to delineate (see Figure 2) . A well located adjacent to the block located at 936-101-9w6 produced 0.2 BCF and 4,835 Bbls of oil. Additional seismic could help define the
potential in the Keg River.
(Figure 4- Keg River Structure w/ bubble map)
Land Schedule
Prospect Name
Section
Township Range Area
Lease Area (acre's)
Mega
26,880
Rights
Expiry
All PNG
All PNG
Ptn All PNG; Ptn PNG below Debolt
Ptn All PNG; Ptn PNG below Debolt
All PNG
08-Mar-17
19-Oct-15
19-Oct-15
19-Oct-15
08-Mar-17
(Acres's)
34
2-11; 14-21; 23
1, 2 11-15, 3, 10
5-7; 16, 18, 4, 9, 17
23-26
101
102
102
102
102
9w6
9w6
10w6
10w6
10w6
640
12,160
5,760
5,760
2,560
The land has Muskwa Shale potential for liquid rich gas potential (see Figure 3). The Muskwa is
the regional equivalent of the Duvernay Fm. in the area. The Muskwa Fm. is being developed by
Husky to the north at Rainbow. The Muskwa Fm. at Mega is thinner and deeper at Mega than in
Husky’s area.
(Figure 3- Muskwa)
Infrastructure exists close by for gas discoveries. Good potential exists on the Block for the
Mississippian sub cropping units within the Debolt.
Taylor Hill is asking $1.0 MM ( $37.20 per acre) and a 5.0% Gorr for the entire prospect however
the company will entertain alternative proposals. More information on the Mega Prospect can
be viewed on the company website at www.taylorhill.ca or by contacting Steve Benediktson @
Ph. 403-256-5653 or Greg Johnson @ Ph. 403-630-1455.