CANADA
A / Northeast British Columbia
Profile
- 72% average working interest in 1.7 million acres in northwestern Alberta and northeastern British Columbia.
- Key areas include Hamburg/Chinchaga, Ring Border, Peggo, Eagle, Monias, West Jedney and Wargen.
- Primarily winter-only drilling.
- Produces oil and gas from multiple formations including liquid-rich gas from the Halfway and Baldonnel at 2,600' to 5,000'.
- 58.2 million barrels of oil-equivalent reserves at 12/31/07.
2007 Activity
- Drilled 64 wells, including:
23 at Wargen.
16 at Ring Border.
11 at Hamburg/Chinchaga.
7 at West Jedney.
2008 Plans
- Drill 37 total wells, including:
9 at Hamburg/Chinchaga.
8 at Wargen.
7 at West Jedney.
3 at Monias.
3 at Eagle.
B / Peace River Arch
Profile
- 70% average working interest in 708,000 acres in western Alberta.
- Key areas include Belloy, Cecil, Dunvegan, Knopcik, Valhalla and Tangent.
- Produces liquids-rich gas and light gravity oil from multiple formations at 3,000' to 8,000'.
- 74.2 million barrels of oil-equivalent reserves at 12/31/07.
2007 Activity
- Drilled 60 wells, including:
16 at Dunvegan.
13 at Cecil.
6 at Belloy.
5 at Knopcik.
2008 Plans
- Drill 65 total wells, including:
19 at Dunvegan.
10 at Cecil.
5 at Valhalla.
4 at Knopcik.
3 at Tangent.
C / Deep Basin
Profile
- 45% average working interest in 1.4 million acres in western Alberta and eastern British Columbia.
- Key areas include Bilbo, Hiding, Blackhawk, Pinto and Wapiti.
- Produces liquids-rich gas from primarily Cretaceous formations at 2,500' to 14,000'.
- 92.4 million barrels of oil-equivalent reserves at 12/31/07.
2007 Activity
- Drilled 41 wells, including:
16 at Wapiti.
15 at Pinto.
5 at Blackhawk.
4 at Bilbo.
1 at Hiding.
2008 Plans
- Drill 49 total wells, including:
15 at Bilbo.
14 at Pinto.
9 at Wapiti.
5 at Blackhawk.
5 at Hiding.
D / Lloydminster
Profile
- 97% working interest in 2.1 million acres in eastern Alberta and Saskatchewan.
- Key areas include End Lake, Iron River, Lloydminster and Manatokan.
- Produces primarily conventional, cold flow heavy oil from multiple formations at 1,000' to 2,300'.
- 97.2 million barrels of oil-equivalent reserves at 12/31/07.
2007 Activity
- Drilled 429 wells, including:
281 at Iron River.
67 at Lloydminster.
40 at End Lake.
28 at Manatokan. - Completed first capacity expansion of Manatokan processing plant.
- Initiated second capacity expansion of Manatokan processing plant.
2008 Plans
- Drill 475 total wells, including:
318 at Iron River.
53 at Lloydminster.
46 at Manatokan.
42 at End Lake. - Complete second capacity expansion of Manatokan processing plant.
E / Thermal Heavy Oil
Profile
- 97% average working interest in 75,000 acres in eastern Alberta oil sands.
- Key asset is Jackfish (100% interest).
- Steam-Assisted Gravity Drainage (SAGD) is the primary recovery method.
- Jackfish facility capacity of 35,000 barrels of oil per day.
- 233.0 million barrels of oil-equivalent reserves at 12/31/07.
2007 Activity
- Completed facility construction and commenced steam injection at Jackfish.
- Sold first barrel of bitumen near year-end at Jackfish.
- Began front-end engineering for Jackfish 2, a lookalike project to Jackfish.
- Completed construction of Access Pipeline.
2008 Plans
- Ramp up production at Jackfish.
- Initiate construction at Jackfish 2 pending regulatory approval and internal sanctioning.
- Drill 27 stratigraphic wells to further evaluate the Jackfish area potential.
INTERNATIONAL
A / Brazil
Profile
- 1.3 million acres in 9 licensed blocks offshore Brazil:
Block BM-C-8 (Polvo); 60% interest.
Block BC-2 (Xerelete); 17.65% interest.
Block BM-BAR-3; 100% interest.
Block BM-C-30; 25% interest.
Block BM-C-32; 40% interest.
Block BM-C-34 (C-M-471); 50% interest.
Block BM-C-34 (C-M-473); 50% interest.
Block BM-C-35; 35% interest.
Block BM-CAL-13; 100% interest. - Located in the Campos, Barreirinhas and Camamu Basins in water depths ranging from 330' to 9,100'.
- Target oil formations at 7,000' to 16,000'.
- Developing 2004 discovery on block BM-C-8 (Polvo development).
- 8.9 million barrels of oil-equivalent reserves at 12/31/07.
2007 Activity
- Completed platform and FPSO installation and commissioning operations at Polvo.
- Drilled and completed 3 development wells at Polvo.
- Commenced first production at Polvo.
- Completed exploratory drilling on block BM-C-8 and obtained government approval for an expanded development area for Polvo.
- Drilled 1 exploratory well on block BC-2 and submitted a declaration of commerciality for Xerelete discovery.
- Conducted seabed logging program on block BM-BAR-3.
- Signed letter of intent to farm out 30% interest in BM-BAR-3 to an industry partner.
- Initiated 3-D seismic reprocessing on blocks BM-C-30, BM-C-32, BM-C-34 and BM-C-35.
- Completed processing of 3-D seismic on block BM-CAL-13.
- Won onshore blocks PN-T-66 and PN-T-86 in the Parnaiba Basin in Bid Round 9.
2008 Plans
- Drill and complete 7 development wells at Polvo.
- Reprocess seismic and consider development options on Xerelete discovery.
- Finalize BM-BAR-3 farm-out agreement and attempt to farm out additional interest.
- Reprocess and interpret 3-D seismic on blocks BM-C-30, BM-C-32, BM-C-34 and BM-C-35.
- Drill second exploratory well on BM-C-30.
- Sign concession agreements on blocks PN-T-66 and PN-T-86.
B / Azerbaijan ACG
Profile
- 5.6% interest in 107,000 acres in the Azeri-Chirag-Gunashli (ACG) oil fields offshore Azerbaijan.
- Initial position obtained in 1999 merger.
- Major oil export pipeline commenced operations in 2006.
- 64.6 million barrels of oil-equivalent reserves at 12/31/07.
2007 Activity
- Commenced production from 11 new wells.
- Installed platform, production and drilling facilities in the Deepwater Gunashli area.
2008 Plans
- Drill and complete 16 producing wells.
- Commence production from Deepwater Gunashli area.
C / China
Profile
- 7.9 million acres in 5 licensed blocks offshore China:
Block 15/34 (Panyu); 24.5% interest.
Block 42/05; 100% interest.
Block 11/34; 100% interest.
Block 53/30; 100% interest.
Block 64/18; 100% interest. - Located in the South China Sea and Yellow Sea in water depths ranging from 150' to 8,200'.
- Panyu fields produce oil from 1998 and 1999 discoveries.
- 19.7 million barrels of oil-equivalent reserves at 12/31/07.
2007 Activity
- Drilled and completed 3 development wells at Panyu, including a successful extended reach well.
- Acquired additional 3-D seismic on block 42/05.
- Acquired blocks 53/30 and 64/18 in South China Sea.
2008 Plans
- Drill 6 development wells at Panyu.
- Replace subsea pipelines at both Panyu platforms.
- Drill one exploratory well on block 42/05.
- Drill one exploratory well on block 11/34.
- Acquire 2-D and 3-D seismic on block 53/30.
- Acquired 2-D seismic on block 64/18.