Annual Report - 2001 - ARC Resources Ltd.

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MAJOR PROPERTIES
CENTRAL ALBERTA
CENTRAL ALBERTA IS COMPRISED OF SEVERAL ADJACENT FIELDS PRODUCING
FROM A VARIETY OF GEOLOGICAL HORIZONS CONTAINING A STRONG INVENTORY
OF DEVELOPMENT PROSPECTS. ARC’S CENTRAL ALBERTA ASSETS CONTINUE TO
PERFORM WELL AND PROVIDE A STEADY BASE OF BOTH OIL AND GAS
PRODUCTION FOR THE TRUST.
CORE PROPERTIES
SUNDRE ELKTON UNITS
The Sundre Rundle B Unit and Sundre Unit No.1 are both operated by ARC
with an average working interest of 75 per cent. These units produce oil from the Elkton
formation, have been under waterflood since the 1960s and contribute net production of
1,278 boe/d to the Trust.
During 2001, a 3-D seismic program was completed and interpreted, which
has led to a revised geological interpretation and allowed further optimization of the
waterfloods. Production was enhanced through stimulations, pump upgrades and well
workovers. In addition, the first horizontal re-entry well drilled in eight years was brought
on production and was stabilized at a rate of 80 boe/d.
EAST GARRINGTON
East Garrington produces sweet, liquids-rich gas and sweet light crude oil from
the Mannville and Cardium formations. ARC operates production in the area, with an
average working interest of 90 per cent. Net production volume to ARC is 877 boe/d.
CAROLINE SWAN HILLS BEAVERHILL LAKE UNIT NO. 1
Shell Canada Ltd. operates this major natural gas unit. ARC’s working interest
of 2.2 per cent contributes 1,445 boe/d net to ARC. Gas production was maintained in
2001 and the gas plant was kept at capacity through facility modifications and the
completion and tie-in of a prolific natural gas well that was drilled in late 2000. Gas
production should be maintained through 2002, as plans call for the drilling of one
additional well in the unit.
CAROLINE CARDIUM E POOL SOUTH UNIT
This property is operated by ARC and produces light sweet crude oil with
associated gas and liquids. ARC has over a 94 per cent working interest and net
production amounts to 657 boe/d. A fracture stimulation program has increased net
production to its highest level since 1997.
ARC ENERGY TRUST AR 2001