Canada's next big resource play could very well turn out to be The Grosmont, a bitumen-rich heavy-oil resource in the Grosmont formation of northern Alberta.
The formation and its potential has been known to the energy industry since the 1970s, but the technology to develop it was never available. Even today, commercial exploitation remains a challenging proposition, due to the heavy and high viscosity of the bitumen trapped in the reservoir.
But the current environment of stronger oil prices coupled with the latest advancements in drilling, completion and production technologies could add up to what it takes to crack this old nut.
Versant Partners analyst Mark Friesen is among those who believe The Grosmont has a very good chance of being developed, likely within in the next three to five years.
The Upper Devonian Grosmont Formation of northeastern Alberta is a giant bitumen reservoir that holds an estimated 318 billion barrels in place (AEUB, 2005) and consists of pervasively dolomitized and heavily karsted carbonates. The bulk of the bitumen accumulation lies in the two uppermost stratigraphic units informally called UG2 and UG3. Over Husky’s acreage, which almost entirely lies along the Grosmont subcrop edge and where the cumulated gross thickness of the two units ranges between 40 and 70 meters, the Grosmont reservoir architecture is characterized by both a significant depositional control and an intense karst overprint.
Montana Bakken Oil Getting More Drilling Starting in 2011
The Montana Board of Oil and Gas is being flooded with drilling permit applications. According to one administrator, Tom Richmond, oil and gas there could be more than 300 permits this year.Taking another look at the latest rig count by Baker Hughes, there are only five rigs currently drilling in Montana. All five are drilling the Williston Basin in Richland County. 2011 is shaping up to be a strong year for Montana.
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