Swan Hills
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| Main Properties: | South Swan Hills Unit, East Swan Hills Unit, Swan Hills Unit, Virginia Hills Unit, House Mountain Unit, Mitsue Unit, Kaybob Unit, Snipe Lake, Shadow, Otter, Red Earth, Girouxville, Springburn |
| Production Mix: | 70% light crude oil 21% natural gas 9% NGL |
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The medium-depth to deeper Swan Hills pools produce premium-quality, light oil at very low annual decline, providing some of Penn West's longest-life reserves. These pools, among the largest ever discovered in western Canada, cover a broad geographical area and have been producing for decades. They offer an array of opportunities to generate incremental production and reserves at low risk. In some cases, optimization alone can entirely offset a property's annual production decline.
In mid-2006, several properties were added at Swan Hills through the Petrofund merger, including Swan Hills Unit #1, Kaybob BHL Unit #1, House Mountain Unit #1 and Carson Creek North BHL Unit #1. This increased Penn West's production in these world-class pools by approximately 2,600 boe per day.
Penn West's key regional property is the South Swan Hills Unit, which generates about 30 percent of area volumes. Since trust conversion in mid-2005, Penn West has maintained the unit's production at a flat rate without any decline. Anchored by this unit's high performance, the overall operating goal is to offset the area's natural declines through comprehensive optimization plus selected drilling, maintaining overall production throughout 2007.
