Operations

“Industry Leading Low Costs & Capital Efficiencies”

The company is focused primarily on development and delineation of its world class Montney natural gas and liquids resource at Glacier, Alberta. Since 2008, production has grown to approximately 235 mmcfe/d (39,167 boe/d) and 2P reserves have increased to 2.2 Tcfe at December 31, 2016. Improved well results and lower costs reduced originally estimated capital requirements by over $177 million to execute our 2014 through 2016 growth plan. Upper, Middle & Lower Montney wells generate rates of return in excess of 50% at $2.50/mcf Cdn AECO prices and current liquids pricing.
Q1 2017 Production:
238 mmcfe/d (39,635 Boe/d)
97% natural gas
3% light oil & NGLs
P+P Reserves Life Index:
~27 years

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The Glacier property is located adjacent to the provincial boundary between Alberta and British Columbia and is between the cities of Grande Prairie, Alberta and Dawson Creek, British Columbia.

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The total thickness of the Montney at Glacier is approximately 300 metres and lends itself to multiple layers of development which contributes to an inventory of >1,100 future well locations within this resource play. This is sufficient to maintain production of 245 mmcfe/d for approximately 50 years.

Since the spud of the first horizontal well in July 2008, as of December 31, 2016, Advantage has drilled 181 horizontal wells at its Glacier property. In addition, two vertical wells drilled into the underlying Belloy Formation are used for acid gas disposal and two vertical wells and one horizontal well are used as service wells that support our water disposal system.

Advantage holds an additional 87 net sections of Montney acreage in close proximity to the producing Glacier asset that will be evaluated for prospective natural gas and liquids potential. These lands will see development in the future with the majority of production planned to be processed at the Glacier gas plant. In aggregate Advantage now holds 178 net sections of land with Montney potential for both natural gas and NGLs.

ProductionClick to enlarge Operating-CostsClick to enlarge Montney-Well-PerformanceClick to enlarge
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Advantage has continued with its program to delineate the Glacier land block by drilling and testing wells in the liquids rich Middle Montney formation. To date, a total of 24 horizontal wells and 3 vertical recompletions have been tested and or produced, confirming the presence of liquids across Glacier with liquid yields up to 83 bbls/mmcf in the eastern half of the land block. This development has resulted in significant delineation and de-risking of the liquid rich Middle Montney resource potential at Glacier.
Advantage owns and operates a 100% working interest gas plant located at 5-02-76-12W6. The Glacier gas plant has a current throughput capacity of 260 MMcf/d of raw gas. A major expansion of the plant was announced in 2016 to increase the capacity to 400 MMcf/d including the 6,800 bbls/d of C3+ liquid extraction. All gas is sold through Advantage’s 100% owned sales pipeline into the TransCanada pipeline system. Combined operating costs at our Glacier field and plant are the lowest among the Montney producers at less than $0.25/mcfe. Gas-PlantClick to enlarge