Southeast Saskatchewan

High Performers Continue to Yield Results

ARC established its presence in southeast Saskatchewan in 2001 through assets it acquired with Startech Energy Inc. These assets have been and continue to be high performers. Average daily production in SE Saskatchewan stayed flat in 2007 at 11,216 boe/d compared with 11,260 boe/d in 2006.

Area In Detail

Area Update

The ARC Southeast Saskatchewan assets span almost 300 km from Tatagwa, Saskatchewan to Goodlands, Manitoba. ARC has been actively acquiring and developing Southeast Saskatchewan properties since our inception. Our current production in the area is approximately 11,150 boe per day – 62.5 per cent operated and 37.5 per cent non-operated. The production is 97 per cent oil and NGLs. This area has provided ARC EOR exposure through our ownership in the Midale and Weyburn CO2 EOR projects. In 2007, we spent $27 million in the area and drilled 20 horizontal oil wells, 13 of which are on production at over 715 boe per day.

In 2008, we plan to spend approximately $42 million on operated projects in the area and plan to drill 22 horizontal wells and eight vertical wells. We will focus significant capital on waterflood upgrades and optimization and continue to focus on value adding, strategic acquisitions near our currents assets.

Information updated to year end 2007

Field Office

Superintendent: Ken McKellar
461 Devonian Street, Estevan, Saskatchewan S4A 2A3
Tel: (306) 637-3100-----Fax: (306) 634-6161