Proven Reserves Exploitation

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In Alberta, Canada the standard drilling spacing unit size for gas wells is one section. A section of land is one mile square. The standard drilling spacing unit size for oil wells is one quarter section.

Normally one well is drilled per drilling spacing unit (DSU). However, recent regulation has changed the standard well density for the south west area of Alberta.

You can apply to the Alberta Energy Resources Conservation Board (ERCB) to change the size of DSU or change the number of wells in a DSU.

Down-spacing decreases the DSU size but keeps one well per DSU. Drilling targets within the down-spaced DSUs are rigidly set by regulation.

Instead of down-spacing, an operator can create a holding. A holding is usually the same size as the existing DSU but allows for a higher well density and more flexibility in drilling target.

For example, if a company wants to drill four gas wells in a particular section, they can apply for a down-spacing or a holding as shown in the following table.

	Down-spacing	Holding
Existing DSU	1 section (one mile x one mile)	1 section (one mile x one mile)
Existing well density	1 well per DSU	1 well per DSU
New DSU	1 quarter section (half mile x half mile)	1 section (one mile x one mile)
New well density	1 well per DSU	4 wells per DSU
New target	LSD¹ 6, 8, 14, or 16	300 m buffer S&W & 100 m interwell²
Total number of wells	4 wells per section	4 wells per section

Notes to example table:

¹A Legal Subdivision (LSD) is one quarter mile by one quarter mile. Four LSDs fit in a quarter section. Sixteen LSDs to a section.

²Can't drill in the buffer of 300 m on the South and West inside the section boundaries. 100 m inter-well spacing is required.

Holding and down-spacing applications are a specialty of Proven Reserves. We have prepared and submitted over 500 Alberta ERCB holding applications, as well as similar applications to the Saskatchewan SMER and BC OGC.

Your regulatory needs met by Proven Reserves.

You Need	Proven’s Service
Get it done, get it right the first time cost effectively	Best approval rate in the industry. We get very few applications closed.
Quick approval to drill and produce wells	Since we get very few applications closed, you get quick approval rather than getting rejected and starting back at the beginning of the queue.
Strong understanding of oil and gas regulations	Prepared and submitted over 500 regulatory applications to Alberta ERCB, Saskatchewan SMER and BC OGC.
Smooth approvals through the regulator	Experienced engineers ensure your applications not only meet the regulatory requirements but are designed to be easily understood and approved.
Avoid hidden regulatory traps	Our relationship with regulators ensure your applications take advantage of the latest unwritten policies. Only half of what you need to know to have a successful application is in the guides.
Make sure your application doesn’t get held up	We identified 13 issues that could cause your application to get stuck at the regulator. We have 42 strategies to make sure they don’t.
See an application through to approval	We at Proven follow up with the regulator every month to make sure your application is top of mind and meets all the needs for early approval.

It pays to use experts.

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