In addition to the new 67 well, 9 property acquisition, Pacific Oil Company is currently focused on two primary projects; The Sundance Project (Heavy Oil) and The Lacadena Project (Natural Gas). Both of these projects are the company’s primary engine for organic growth due to the fact that they:
1) Have dramatic untapped upside potential
2) Present the opportunity for further optimization and cost control
3) Are located in proven energy rich geographical areas
Currently the 12 well Sundance Project is producing while the 27 natural gas wells of The Lacadena Project are shut in for summer maintenance
The Sundance Project
Location: Maidstone, Sask., CAN
Type of project: Heavy Oil
Number of wells: 12
The Sundance Project is a producing heavy oil play located in Saskatchewan Canada. It consists of eleven heavy oil wells plus one revenue generating waste water disposal well.
The management of Pacific Oil has extensive firsthand experience in this operational area and has the cultivated relationships in place that are required to act quickly while at the same time keeping the economy of operations under control. Pacific Oil has been successful in increasing efficiency, lowering operating costs and increasing the profitability of the project as a whole.
Heavy oil is a commodity that Pacific Oil has a preference for due to its lower overall risk and the built in opportunity / growth that come from advances in technology. Pacific Oil is committed to utilizing viable new technologies with the goal of maximizing production and profits. For example an extensive nine well work over program for the Sundance Project has been formulated and the company is enthusiastically optimistic that the results of the undertaking will produce results that will impact the company’s bottom line substantially positive way.
The aforementioned waste water disposal well that is located on site is sufficient enough to not only handle the waste water from Pacific’s own wells but also has the capacity to generate revenue from other companies in the area. Environmentally friendly waste water disposal is required by law and Pacific Oil is capitalizing on this regulation while at the same time keeping its own costs to a minimum.
Operating in the province of Saskatchewan has many benefits for the company. Support for the energy industry extends throughout all levels of government. As a result of this support the business climate is favorable with simplified regulation and agreeable economic terms. Saskatchewan has massive energy reserves, great operational infrastructure and a highly experienced workforce. Pacific Oil will be actively seeking further growth within the province and looks forward to enhancing the relationships already in place.
The Lacadena Project
Location: Shackleton, Sask., CAN
Type of project: Natural Gas
Status: Shut in for maintenance
Number of wells: 27
Consisting of 9600 acres of prime energy rich land within the prolific Western Canadian Sedimentary Basin, the Lacadena Project currently contains 27 natural gas wells.
The potential of this play is massive for Pacific Oil due to the overall size of the project but more importantly the extremely positive geological data that has emerged. A number of additional viable drilling targets have been identified to have positive metrics as well as a low risk, high reward profile.
Pacific Oil company is excited about Natural gas for the following reasons:
1) Energy is a natural hedge against inflation of the US dollar
2) Goldman Sachs is bullish (long) on natural gas. A Goldman analyst even called it “the new safe haven.”
3) The days of “King Coal” in the generation of electricity are drawing to a close. U.S. power plants produced an equal amount of electricity from gas and coal in April 2012 for the first time. Roughly 90 GW worth of power plants are set to retire by 2020. Natural gas set to be #1.
4) Across North America entire fleets of heavy-duty trucks have been retrofitted for Natural gas, while refueling terminals have been popping up near interstates in the U.S. to service company-designated vehicles.