Annual Report - 2001 - ARC Resources Ltd.

PAGE 26
MAJOR PROPERTIES
SOUTHEAST ALBERTA & SOUTHWEST SASKATCHEWAN
DEVELOPMENT IN THIS FOCUS AREA BEGAN IN 1999 WITH THE ACQUISITION OF
THE JENNER SHALLOW GAS ASSETS, WHICH ARE IDEAL FOR A TRUST. ARC’S
PROPERTIES CONTAIN LOW RISK AND LOW OPERATING COST OPPORTUNITIES IN
SWEET GAS FIELDS. THERE IS ALSO A WELL-DEVELOPED INFRASTRUCTURE AND
EASY ACCESS TO PIPELINE TRANSPORTATION. WITH THE 2001 ACQUISITION OF
THE BROOKS FIELD FROM STARTECH, THIS AREA HAS RAPIDLY GROWN INTO THE
FOURTH LARGEST PRODUCTION AREA IN ARC’S PORTFOLIO. THE BROOKS AREA
COMPLEMENTS THE EXISTING JENNER SWEET SHALLOW GAS FIELDS;
COLLECTIVELY, THESE AREAS PRODUCE 30 MMCF/D.
CORE PROPERTIES
JENNER
Jenner is the Trust’s second largest producing property with daily production
volumes now exceeding 16 mmcf/d from 800 producing gas wells. ARC holds an average
working interest of 90 per cent in this area.
During 2001, 36 shallow gas infill wells were drilled on 80-acre spacing. The
wells were completed and brought on production in the fourth quarter, adding a total of
3 mmcf/d. This volume filled unutilized capacity in existing infrastructure. In 2002, ARC
plans to drill additional 80-acre infill wells and will continue to incorporate deeper targets
within its shallow gas drilling programs.
BROOKS
The Brooks shallow gas field is the Trust’s third largest production area at
14 mmcf/d. ARC operates with an average 92 per cent working interest in the area.
Activity in 2001 centered on a farm-in agreement which has given ARC the rights to
deeper horizons below its existing shallow gas holdings. In addition, ARC shot and
interpreted six square miles of seismic and drilled four deeper wells. The number of farmin
wells drilled now totals six, with five new pool discoveries earning six sections of deeper
rights. Gas production from these six wells currently exceeds 2 mmcf/d. ARC has the
option to continue drilling to earn deep rights until May 2002.
ARC ENERGY TRUST AR 2001