Stealth has proven expertise in unconventional oil & gas. The Company’s primary focus has been shale gas play at Wildmere Alberta, producing from the Cretaceous Colorado Group of Shales (Colorado). Stealth acquired these properties through two farm-in agreements, and through the acquisition of land from Crown Land Sales. As exploration continued, the shale gas property rose to the top as the Company’s first commercial play.
The Corporation focussed on the exploration for, and the acquisition, development and production of, unconventional natural gas reserves, derived primarily from shale, Coalbed Methane (CBM) and tight sand reservoirs. Stealth has also worked on new technology in the form of Underground Coal Gasification (UCG) on its CBM play in Cumberland Basin, Nova Scotia.
Stealth’s Canadian based assets are:
Stealth holds an average 90% working interest in approximately 143 sections of land at the producing natural gas property at Wildmere, located west of Lloydminster, Alberta, along with a 100% working interest in CBM prospects in the Cumberland Basin of Nova Scotia, which is located near the town of Amherst.
Stealth’s total current net production from Wildmere is approximately 1,200 Mcf/d of natural gas, or 200 boe/d; however, the Company has temporarily shut-in some of its lower rate wells due to low natural gas prices.
There is potential to significantly increase production from the Colorado Shale resource play at Wildmere through infill drilling and recompletions. The Company holds a high working interest in over 36,800 hectares of land, of which approximately 40% remains undeveloped. Much of the Company’s land has to date been developed with only one well per section; the prospect can support development of multiple wells per section.
Colorado Group Shale Gas Prospect
In the southern portion of the Western Canadian Sedimentary Basin, crossing the southern end of Alberta, British Columbia and Saskatchewan., the Colorado Group is characterized by a 300 metre thick section of shale that has been estimated to contain as much as 100 Tcf of shale gas.
Stealth has drilled shale gas wells at Wildmere for several years, with 120 wells drilled or acquired on the property to date. These wells, which are the first wells in Alberta to be formally designated shale gas wells by the Energy Resources Conservation Board (ERCB), have proved up a natural gas resource of over 100 Bcf of natural gas underlying Stealth’s lands.
Stealth’s unconventional gas play at Wildmere has grown and matured to encompass a critical mass of land, technology, and production so that it has evolved from being described as an exploration discovery in the Colorado Group to a development play in unconventional gas.
Stealth’s studies have determined that the optimum well density is 18 wells per section. As an initial development plan, Stealth has applied for and received Holding Approval to drill eight wells per section on 29 sections in the Wildmere area.
CUMBERLAND, NOVA SCOTIA
Coalbed Methane in the Cumberland Basin
The Cumberland Basin in Nova Scotia hosts a natural gas resource play estimated by Sproule to contain 1.18 Tcf of net discovered CBM resource. This area is in close proximity to the Maritimes & Northeast Pipeline, and is expected to have access to low-pressure natural gas infrastructure built by Heritage Gas of Dartmouth, Nova Scotia, in addition to other sales options such as Underground Coal Gasification (UCG) or electrical generation.
Stealth initially acquired a 75% working interest in a 177,000 acre Exploration Agreement by way of farm-in and purchase in 2005 and 2006. The acquisition was finalized later that year with the buyout of Stealth’s 25% working interest partner, resulting in Stealth holding a 100% interest in the lands.
CBM Prospects in the Cumberland Basin of Nova Scotia
The CBM prospects in the Cumberland Basin in Nova Scotia are a series of wet coals similar in character to Alberta’s Mannville coal. Total coal thicknesses from the coal seams in the main two formations are up to 30 metres (Springhill Mines Formation) and 10 metres (Joggins Formation).