Colville Lake Presentation July 2019 - Mackenzie Valley Land ...
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Colville Lake Presentation
July 2019
Disclaimer
Paramount Resources Ltd. ("Paramount"), has taken all reasonable care in
producing and publishing the information contained in this
presentation. Material in this presentation may still contain technical or other
inaccuracies, omissions, or typographical errors, for which Paramount assumes
no responsibility. Paramount does not warrant or make any representations
regarding the use, validity, accuracy, completeness or reliability of any claims,
statements or information in this presentation. Under no circumstances,
including, but not limited to, negligence, shall Paramount be liable for any
direct, indirect, special, incidental, consequential, or other damages, including
loss of profits, arising from your use, or inability to use, the material in this
presentation. The information is not a substitute for independent professional
advice and your own further due diligence before making any investment
decisions. Furthermore, you may not modify or reproduce in any form,
electronic or otherwise, any information in this presentation, except for
personal use unless you have obtained our express permission.
2
MGM Energy History
• MGM Energy was spun out of Paramount Resources Ltd. in 2007 and
became a stand alone publicly traded company
• Land base in the Sahtu Settlement Region and in the Inuvialuit
Settlement Region
• Delays in the Mackenzie Valley Gas Project resulted in Paramount
Resources Ltd. purchasing MGM Energy in 2014
• MGM Energy continues to exist as a wholly owned subsidiary of
Paramount Resources Ltd.
• Paramount bought Apache Canada in 2017
3
MGM Energy 2014 to Current
• MGM has been conducting annual well head inspections and an
annual environmental program
• Well head inspections are reported to the Office of the Regulator of
Oil and Gas Operations (OROGO)
• Local contractors have included Kalo Stantec and Canadian
Helicopters.
• Other local services have been Monitors and Accommodations
4
Mackenzie Valley Corridor
5
Mackenzie Pipeline Timeline
• 2010 Mackenzie Valley Pipeline approved
• 2014 Paramount Resources Ltd. purchases MGM Energy
• 2016 Approvals for MacKenzie Gas Project extended to 2022
• Dec 29, 2017 MacKenzie Gas Project joint venture cancelled by
Imperial Oil resources, Conoco Phillips Canada, ExxonMobil Canada,
and the Aboriginal Pipeline Group
6
Dollars Spent to Date by Paramount Resources Ltd.,
Apache Canada Ltd and MGM Energy
Field Area
Maunoir Colville Lake
Spending Type Colville Lake Ridge Nogha Turton Lake Other Area
MGM/PRL Total 22,096,794 21,850,483 26,535,507 6,671,131 5,000,000 82,153,915
ACL Total 17,386,816 21,850,483 26,053,575 6,671,131 - 71,962,005
Total MGM/PRL/ACL Spend 39,483,610 43,700,965 52,589,082 13,342,262 5,000,000 154,115,920
7
Maunoir C-34: Cambrian Oil Discovery
Cambrian Oil: 235 bopd
8
Net Pay: 13.4 m; Porosity: 15.4%; Sw: 32%
Resource – Maunoir Ridge
9
Maunoir Structure
Location: A-67
Primary
(Lateral Continuity)
Colville D-45
D&A
Location: E-35
Contingent
(Closure)
Maunoir C-34
Cambrian Oil
235 BOPD Closure: 7 - 8
sections
6.7 miles
10Nogha Structures, NWT
BELE (170 BCF) W. NOGHA NOGHA
Suspended Suspended
-950 O-35 K-14 O-47 C-49 M-17 B-23
3.5 mmcf/d
+ condensate
-1000
*42 mcf 5 mmsf/d
Subsea Depth (m ss)
Bele
Structure ic Mt.
SDL 23 rozo
P rot
e Clark
-1050 1.9 mmsf/d
*Tstm Nogha
Structure 1.7 mmsf/d
Bele Probable
Fault Nogha Fault
System System G/W
-1100
West *Wet
Nogha
Structure *Wet
11
-1150
*zone not frac’dNogha Structure, NWT
12Central Mackenzie Valley Assets
Central Mackenzie Discoveries
• Nogha Gas (100% working interest)
• 212 bcf mean gross contingent resource
• Maunoir Oil (100% working interest)
• 235 bbl/d test (C-34)
• East Mackay Shale Oil (62.5% interest)
• 1,000 MMBO in place
Central Mackenzie Land
• EL 474 & 475 (50% interest)
• 171,890 hectares (gross)
• EL 473 (100% interest)
• 82,643 hectares
• EL 487 (25% interest)
• 84,504 hectares (gross)
• East Mackay (62.5% interest)
• 82,100 hectares (gross)
• Nogha M Blocks (50% interest)
• 60,000 hectares (gross)
• Nogha Crown Lands (100% interest)
• 80,240 hectares
• Acquired in July 2010
13• MGM Energy owns and controls meaningful volumes of natural gas:
• Internal Estimates of Resources
• MGM Energy is the operator of all discoveries.
14Current Geological Work
• Murray Gingras at University of Alberta has 2 grad students working
on the Mt. Clark Formation
• NWT Geological Survey and GSC have done some recent regional
mapping
15Historical Markets
• Norman Wells: Initial production (pre 1944) was dedicated to local
consumption and mining projects in Yellowknife
• Norman Wells: 1944-45 Canol Pipeline
• Norman Wells: 1985 to present Enbridge Pipeline
• MVGP
16Current Markets
With the MVGP postponed indefinitely there is no line of sight to a market.
17MGM Energy - Environment
• Environmental program results are reported to the Sahtu Land and
Water Board
• Environmental program has focused on terrain monitoring/sampling,
revegetation and invasive species elimination
1819
Project Scope Colville Lake Area
• Abandonment and Reclamation/Remediation activities
• Include activities including ice road building, service rig,
abandonment operations, camps and remediation/reclamation
activities
• Leave operation options open so the Permit and/or Licence do not
need to be amended in the future
• Use the Licence and Permit for Colville as a template for other MGM
holdings in the Sahtu Settlement Area
20Regulatory Requirements
• A Land Use Permit and Water Licence are required from the Sahtu
Land and Water Board (SLWB) to facilitate abandonment and
reclamation activities. (5 year term with a extension or amendment
for 2 years)
• MGM also requires approvals from OROGO (underway) for an
Operations Authorization and individual Authorities to Alter Condition
of a Well
21Project Timeline
• Engagement Activitites started in Q1 of 2019 and will continue
through Q3 of 2019
• Apply for Regulatory approvals from OROGO and SLWB starting in Q2
of 2019 (OROGO) and Q4 of 2019 (SLWB)
• Receive Regulatory approvals in Q1 of 2020
• Conduct abandonment/reclamation activities in 2021-2022 or 2022-
2023 winter season
• Monitoring in subsequent years
22Project Equipment for Construction and
Abandonment
Type No. Type No.
Trucks (e.g., vacuum water) 4 Abandonment related equipment
Front end loaders with optional attachments 4 40 Man Camp 1
Graders 4 Service rig 2
Plough/auger truck 4 Service Rig Pump and tank 1
Pick-up trucks (personnel vehicles) 10 Spare Rig Pump 1
bulldozers 8 Catwalk & Pipe Racks 2
Trackhoe 2 100 to 150 HP Boilers 3
Backhoe (rubber-tired) 2 Wellsite Shacks 3
Snow cats 6 Eline/Slick line unit combo unit 2
Dump trucks 4 P-Tank unit with flare stack 1
Snowmobiles (gasoline) 4 Jet Cut equipment for cut and cap operations 1
Snow making machines(s) and/or spray ice pump & monitor(s) 4 Back Hoe for cut cap operation 1
Accessory and support equipment (e.g., power generators, light towers, tanks) 6 Bed Truck for hauling equipment 2
Communication systems (e.g., radios) 20 Picker Truck for hauling equipment 2
Water tank truck for produced Fluid 2
Potable Water Trucks 2
Hydrovac truck 2
Vacuum Truck 2
Cement Pumpers 2
Cement Bulker 1
Heated insulated 63.56m3 tanks for fresh water 4
Heated insulated 63.56m3 tanks for produced water 2
Snow mobiles 2-4
Methanol Storage 10m3 1
Secondary containment for tanks 8
23Project Personal for Construction and
Abandonment
Role Estimated Number of Personnel Role Estimated Number of Personnel
Supervisor 2 Abandonment supervisors 3
Logistics supervisor 1 Rig managers 1
Equipment operators 20 Rig personnel 4
Camp maintenance 2 Oilfield Trucking 2
Medical 2 Vacuum truck operators 2
Safety Coordinator 1 Camp maintenance 2
Environmental Monitor 1 Medical 1
Wildlife Monitor 1 Safety Coordinator 1
Environmental Monitor 1
Wildlife Monitor 1
Water Truck Operators 4
P-Tank-Test Crew 3
Logging/slickline Crew 3
Cement Pumper 3
Cement Bulker 1
Fuel farm attendant 1
Security/access control 1
Fuel truck driver 1
24Examples of Equipment
25Concepts to Move Forward
OROGO HAS MANDATED THAT ALL WELLS MUST BE ABANDONED BY
2023, UNLESS THEY ARE ON PRODUCTION, OR HAVE A PLAN TO
PRODUCE.
26Backup
Nogha M-17 Gas Analysis
2829
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