Annual Report - 2001 - ARC Resources Ltd.

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MAJOR PROPERTIES
NORTHERN ALBERTA & B.C.
NORTHERN ALBERTA AND B.C. IS ARC’S LARGEST FOCUS AREA AND IS LOCATED
IN ONE OF THE MOST ACTIVE OIL AND GAS AREAS IN CANADA. THE AREA
BECAME A MAJOR GROWTH CENTER IN 2000 WITH THE ACQUISITION OF
PRODUCING ASSETS AT SWAN HILLS AND ANTE CREEK. THE AREA IS A PRIME
TRUST ASSET DUE TO THE RELATIVELY LOW-RISK DRILLING TARGETS, LOW
OPERATING COSTS, HIGH NETBACKS AND A DIVERSE BASE OF OPERATED AND
NON-OPERATED ASSETS. THE PLAYS DEVELOPED BY THE ARC TECHNICAL TEAM
ALSO BENEFIT FROM THE STRENGTHS AND SYNERGIES OF THE TRUST’S
PARTNERS IN NON-OPERATED PROPERTIES.
CORE PROPERTIES
ANTE CREEK
ARC owns an average working interest of 92 per cent in 19,360 gross acres in
the partially developed Ante Creek Montney A pool, which produces sweet light crude oil.
In 2001, ARC recorded 100 per cent drilling success in a three-phase development
program that saw 15 wells drilled. Seven oil wells were drilled and tied-in early in
2001, followed by a second seven-well phase at mid-year. The first of six wells planned
for the third phase of the program was drilled in late 2001 and the program continued
in 2002. Future development will also include production of a well defined gas cap.
DUNVEGAN GAS UNIT NO. 1
Through the Startech acquisition in 2001, ARC increased its working interest in
this natural gas unit to 5.1 per cent. The Dunvegan field was discovered in the early
1970s, and remains a hub of development activity. A total of 18 development wells and
recompletions were undertaken in 2001, resulting in net production of 643 boe/d to ARC.
Development drilling is expected to continue in 2002.
HOUSE MOUNTAIN UNIT NO. 1
ARC owns a 9.2 per cent working interest in this light crude oil unit in the
Beaverhill Lake formation operated by Apache Canada Ltd. ARC’s share of net
production was 430 boe/d in 2001 following a program of horizontal re-entry drilling and
waterflood optimization. Development activities are continuing in 2002 and will include
further horizontal re-entry drilling, well re-activations, fracture stimulations and further
waterflood optimization.
ARC ENERGY TRUST AR 2001