Directive 065: Resources Applications for Oil and Gas Reservoirs ...

• In the case of a commingled well, the name of the producing formation must be entered,
and production data for each applied-for formation are required.
• If providing production information for a formation based on allocation, the methodology
used to determine the allocation for each applied-for formation in the wellbore must be
included. Refer to Section 7.6.3.2 for further details on required production information.
Production information is not required for applications to rescind holdings, rescind special
DSUs, re-align holding boundaries, remove interwell distances, or amend the buffer zones to
the standards of the area.
7.3.4 Reserves Information Requirements
Based on the technical complexity of an application, the ERCB may require reserves
information and performance data to support a change in well spacing. Where required,
applicants must provide reserves data and recoverable reserves estimates from wells
representative of the application area. The application must include a discussion of the
reserves information provided and detail how the data support the proposed spacing change.
Where an applicant plans to develop using horizontal wells, the reserves information
provided in support of the application must be from horizontal wells or the applicant must
provide a discussion explaining how the vertical well data used in the application supports the
proposed horizontal development.
All reserves information provided in support of an application must be provided using the
EAS Volumetric Reserves Form. All production plots and decline analysis for wells for
which volumetric reserves data have been provided must be included in the “Production
Decline Plot and Analysis” attachment.
Where horizontal well data is provided, the applicant must adjust the DSU area and the
estimated ultimate recoverable reserves (EUR) to account for the entire productive portion of
the horizontal wellbore. The application document must clearly explain how the values in the
Volumetric Reserves Form were derived.
Refer to Section 7.6.3.2 for further details for volumetric reserves information.
7.4 How the ERCB Processes the Application
The ERCB processes special well spacing applications along three risk-based processing
paths: quick, standard, and nonstandard, having regard for
• location of the proposed application areas relative to previously approved spacing for the
same formations and substance,
• proposed provisions, and
• available production and reservoir information.
The processing path may change if the ERCB finds that additional information is required to
technically support the application.
The minimum requirements for an application that meets the quick application path criteria
are significantly fewer than those for a standard and nonstandard path application. Therefore,
it is beneficial to analyze development plans before preparing and submitting a special well
spacing application.
ERCB Directive 065: Resources Applications / Application for Special Well Spacing (October 2011) • 7-13