Blog

Solomon and GPMi Complete 2016 Alberta High-Condensate Montney Growth Assessment

September 16, 2016

Solomon and GPMi release report examining key growth areas of the high-condensate Montney play in Albert

Montney Growth Assessment Area

Figure 1. Montney Growth Assessment Area

CALGARY, ALBERTA – 16 September 2016 – Solomon and GPMi announced the completion of their comprehensive assessment of Alberta’s high-condensate Montney play in the vicinity of the Wapiti River, [1] the Alberta High-Condensate Montney Growth Resource & Infrastructure Assessment (Alberta High-Condensate Montney Assessment).

The assessment analyzes the area’s production potential for natural gas and natural gas liquids (NGL), as well as its natural gas/NGL gathering and processing infrastructure and takeaway pipelines.

The new assessment highlights our ability to analyze smaller areas within the overall Western Canadian Demand and Supply Models to meet the focused needs of our customers. This capability is an important addition within the service offering of our larger geographic and product based studies.[2] Solomon and GPMi can tailor the area and depth of investigation to meet the immediate needs of a client in support of acquisition or divestment efforts, strategic or tactical planning for a specific asset, and facility- or play-specific applications. The 2016 Alberta High Condensate Assessment is a working example of that capability.

The Alberta Montney play is a growth play that has been analyzed as part of the larger geographic assessments completed by Solomon and GPMi—the 2015 Montney Growth Resource & Infrastructure Assessment and the 2016 Northern Duvernay & Tight Gas Growth Resource & Infrastructure Assessment. These assessments examined key growth areas of the Cretaceous, Montney, and Duvernay plays in Alberta and British Columbia from northwest of Fort St. John to west of the town of Drayton Valley. The broad area encompasses some of the primary growth plays in Western Canada. One of these plays, the high-condensate portion of the Alberta Montney, is of specific interest as it represents one of the premium natural gas growth opportunities in North America when ranked on full-cycle finding and development costs.

To fully understand the growth potential from the Alberta Montney play, we developed a new assessment, drawing on one sub area from the 2015 Montney Growth Assessment and three sub regions from the 2016 Northern Duvernay Growth Assessment, and updating actual production to year-end 2015. This assessment entailed updating the Integrated Forecasting Model based on 2015 production with Western Canadian gas demand forecast adjustments and incorporating additional detail to more fully define and understand this key Western Canadian growth play.

The assessment highlights the issues that will develop as a result of significant growth in natural gas and hydrocarbon liquids production as the Montney is developed in the assessment area. Specifically, the assessment accomplishes the following:

  • Examines gas and NGL take-away infrastructure and optimization required for future production.
  • Focuses on new gas gathering and processing facilities where required.
  • Develops a logical case for infrastructure development, operation, and management.
  • Forecasts natural gas (raw gas and sales gas) and hydrocarbon liquids by-product as part of a Western Canadian Natural Gas Demand and Supply Model.
  • Examines larger gas processing facilities in the area that have the capacity to handle forecasted growth.
  • Focuses on the high-condensate Montney play, incorporating a full geological look at the production potential from the entire Montney play and all other plays in the Wapiti area. Organizations and industry professionals can contact Jihad Traya (Solomon) by phone at +1.403.234.4275 or by email at Jihad.Traya@SolomonOnline.com or Bob Child (GPMi) by phone at +1.403.650.3893 or by email at Bob@gasprocessing.com.

[1] © 2016 HSB Solomon Associates Canada Ltd. (Solomon) – Reprinting this chart is permitted with proper credit and citation given to Solomon.

[2] The resource and infrastructure assessments that are currently available include: Montney Growth, Northern Duvernay & Tight Gas Growth, Southern Duvernay & Tight Gas Growth, North Montney & Shale Gas Growth, NGL Growth – Impact of LNG Development, and Gas West for LNG Growth

About Gas Processing Management Inc.

Gas Processing Management Inc. is a Calgary, Alberta based consultancy that focuses on the business of energy infrastructure from the wellhead through the gas gathering and processing, sales gas, NGL, and LNG Systems. For further information about GPMi, consult their website at GasProcessing.com.GasProcessing.com.