Colony Energy holds a 100% interest in and to certain petroleum, natural gas and general rights, including Alberta Crown Petroleum and Oil Leases, in 20 contiguous sections totaling 12,960 acres located in the Godin area of Northern Alberta.
The Godin land leases consist of the Wabiskaw formation on which an analog well (13-27-082-02W5/0) in the Western edge of the acreage has tested oil and showed moveable oil in the shakers during the drilling process.
Approximately 26 kilometers to the east of our Godin property is the highly successful Canadian Natural Resources Limited (“CNRL”) Pelican Lake Heavy Oil Project, also known as the Brintnell Project. Colony’s Godin property is located between the 13-27-082-02W5/0 well and the Brintnell project where CNRL is producing approximately 50,000 Bopd from the Wabiskaw Formation.
In the annual performance submission to the Alberta Energy Regulator by CNRL, they stated that primary recovery on their leases has been between 5 to 8%, while incremental polymer flooding has increased tertiary recovery to a range from 14 to 30%. Our review and due diligence of the Godin Heavy Oil property has revealed that there are many similarities between the two areas in the Wabiskaw formation. The Godin play is analogous to the CNRL Brintnell Project in that the proposed Godin development is analogous to the Brintnell in depth, porosity, oil saturation and structure.
The Company intends to develop the Godin Project in three phases beginning with a four well vertical, followed by a four section pad development of 10 wells per pad/per section. Phase 3 is intended to be the full development of 20 sections.