Natural Gas and Oil in Shale in Quebec Lessons Learned Thus Far Presented by: Peter Dorrins President & C.O.O. CI Energy Groups 8th Annual Shale Gas & Oil Gas Symposium Calgary January 24th to 25th 2012
Prospective Statements Prospective Statements This document contains prospective statements which state the expectations of management with regards to the growth, the operation results, the return and the commercial prospects and…
Junex An Active Explorer Created in 1999 & listed on the TSX Venture Exchange in June 2001 and headquartered in Quebec City Holds exploration rights on 5 million acres in Quebec First Mover in the St. Lawrence Lowlands Basin (land…
Oil & Natural Gas Exploration in Quebec Is Not Something New 30 Total Number of Oil & Natural Gas Exploration Wells Drilled in Quebec 25 449 wells drilled since 1859 into Paleozoic-aged rocks Strategic Environmental Evaluation…
Natural Gas from Shale in North America The Quebec Situation 100% of Quebecs needs Shipped Annually 200 Billion Cubic Feet MACASTY Quebec has Significant (BCF) of Natural Gas (2 billion) Potential for Natural Gas in Shale 5%…
Utica & Macasty Shales in Quebec MACASTY UTICA MACASTY CI Energy Groups 8th Annual Shale Gas & Oil Gas Symposium Calgary January 24th to 25th 2012
Galt Total OIIP Resources of 260 MMBO Net Rec. Resources of 19.5 MMBO (NSAI P50) Lowlands Utica Shale Gas Taconic Front Play (overthrust) 800,000 net acres Total Undiscovered Prospective OGIP Resources 49 TCF Chaleurs Bay…
Utica Play Fairways and Exploration Activities 2006 to 2010 (Utica) 30 wells 11 horizontal 200 million invested NW Emerging play Operators: Talisman (10 wells 5H) JUNEX (7 wells) Canbriam (6 wells 3H) Forest Oil (4 wells 3H)…
Utica Play Fairways NW SE Liquids-Rich Shallow to Medium to Deep Thermogenic Medium (Depth) Shale Gas Structured (overthrust) Thermogenic Thermogenic Shale Gas SE Shale Gas Logans Line Yamaska Fault Zone Quebec…
Liquids-Rich Gas Liquids-rich gas found in the NE Lowlands Taconic Coincidence of Liquids-Rich Front Belt with part of Shallow- Single instance of (overthr Junex St- St-Augustin No. 1 biogenic gas in ust) Medium Depth Shale Gas…
Oil-Rich Macasty Shale Anticosti Island Anticosti Macasty Shale Oil Play 233,275 net acres Total Undiscovered OIIP of 12.2 Billion Bbls (NSAI P50) Oil or Liquids- Liquids-Rich Plays Natural Gas Plays CI Energy Groups…
Anticosti Island Macasty Shale Oil Potential JNX has significant land position of 233,275 net acres, mostly in the Deep Macasty Fairway 12.2 Billion Barrels Undiscovered Shale Oil Initially-in-Place (OIIP) (NSAI P50) on JNX…
Anticosti X-Section Deep Macasty Fairway Macasty Shale is the stratigraphic equivalent of the Utica Shale Lowlands Thicker in Deep Macasty Fairway than on other side of Jupiter Fault zone (ave. 80m vs 40m at Chaloupe well)…
A Reminder About Resources The Utica Shales potential is promising so far some of the Utica in certain areas of the Lowlands have been classified as being Prospective Resources at best (i.e. Junex Total Undiscovered Prospective…
+ ES 20 ERV S RE 5 Quebec Shale Development Status t Re so urc es 4 en Commercial (Utica & Macasty) Co nt i ng 3 Development (reclamation in part) s rce Barnett sou ve Re 2 Pilot Production t i Marcellus ec…
Socio-Political Political Will (except for govt financing) Social Acceptability EXPLORATION IN QUEBEC Legislation Good Business Environment 1984 Evolution from an area with little resource potential with Economics Potential…
We had: Demonstrated Potential A sizeable local gas market & access to large gas market next door Long-term exploration licences with reasonable obligations Generally competitive royalties A province with 225 billion debt, therefore…
What happened CI Energy 8th Annual Shale Gas & Oil Gas Symposium Calgary January 24th to 25th 2012
Lets Consider the Sequence of Events Past Events Possible Future Events (i.e. predictions may be inaccurate) Fo rest Oil A nno unces Utica St-do uard Co mpletio n Results SEA Evaluation Starts SEA Co mpleted Disco very Gasland…
Citizenry feels it has Challenge of Social Acceptability been misled by Objective vs Subjective politicians in the past Little/no information Science No familiarity Data Fear its something Experience new so we should be scared…
Everyone Considers Themselves to be Stakeholders whether or not they are directly affected In part, a direct result of the impact of social media Social media perception a parallel system of democracy If so, why Mistrust of…
Examples of Opponents and Others Public Statements Dont FRACK with our water Can you imagine your children drinking tap water so contaminated that you could actually light it on fire Fracking Poisons Our Groundwater and Drinking…
Land Management Considerations Population Density & Shale Gas Exploration GIS/Mapping tool helps land management of shale gas exploration Main exploration operations performed to date in area with lower population density (0…
Land Management Considerations Agriculture & Shale Gas Exploration Green colors (Class 1-2-3) represent the area with the highest soil potential for agriculture Main Utica exploration operations to date mainly in Class 4 area…
Land Management Considerationss Agricultural Land Use & Proximity to Dwellings Narrow elongated land parcels (Seigneurial system 1627-1854) Agricultural land protected by law in Quebec - CPTAQ Commission manages agricultural…
Land Management Considerations Agricultural Land Use & Proximity to Dwellings Example of rang or farm road in St. Lawrence Lowlands near Quebec City Road quality varies throughout lowlands Can have moderate population density…
A Selection of Learnings Industry held 3 large, open Town Hall meetings fall 2010 to answer residents questions Being open meetings, media (notably TV crews) were present activists monopolized the microphone & created a spectacle…
A Selection of Learnings continued Various approaches attempted by various industry players grassroots meetings with municipal officials presentations to chambers of commerce restricted public meetings participation in discussion…
Conclusions The Prize Quebec Shales Widespread source rocks Utica, Lorraine & Macasty Shales Hi-quality resources - High BTU (heating value) Liquids-rich Gas and Oil Demonstration of gas production rates (Utica) Existing…
Conclusions (continued) continued) The Challenge Social acceptability Public information-sharing of facts separately by government & industry methods, impacts, economic benefits, law Strategic Environmental Assessment report…
Conclusions (continued) continued) Outlook Quebec government decided that a period of reflection was required (BAPE hearings, SEA study) Provincial debt now 244 billion, increasing at 11.3 billion annually…
Natural Gas and Oil in Shale In the Heart of the Utica Play in Quebec Lessons Learned Thus Far Taconic Front (overthrust) Galt Haldimand Gasp Peninsula St. Lawrence Lowlands Chaleurs Bay (overthrust, 1,5 million acres…
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