$75 Million ENRC Investment in Alberta Oil and Gas
EnergyChain Announces $75 Million Investment in Alberta Oil and Gas
Pushing Boundaries. Driving Innovation. Empowering Growth.
EnergyChain is proud to announce a landmark $75 million investment into Alberta’s oil and natural gas sector, focusing on conventional oil and natural gas developments. This strategic initiative will spearhead the deployment of cutting-edge technologies across multiple 10-well sites, setting new standards for efficiency and sustainability in energy production.
With Alberta’s rich resources and EnergyChain’s innovative blockchain solutions, this investment ensures a secure, transparent, and profitable framework for energy exploration and production. By leveraging blockchain-powered smart contracts and tokenized assets, the project will unlock unparalleled opportunities for stakeholders while contributing to the region’s economic resurgence.
This $75 million commitment reinforces EnergyChain’s dedication to driving technological advancement in the energy industry and supporting Alberta’s vital role in meeting global energy demands.
In Alberta's oil and gas industry, a 10-well pad is a common configuration, particularly in formations like the Montney and Clearwater. Here's an overview of average well performance for such a setup:
1. Montney Formation:
Initial Production (IP) Rates:
- Liquids (Oil + Condensate): Top-performing wells have reported daily production averages ranging from approximately 925 to 1,556 barrels per day (bbl/d).
- Natural Gas: Some wells have achieved production rates exceeding 30 million cubic feet per day (MMcf/d).
- Liquids (Oil + Condensate): Top-performing wells have reported daily production averages ranging from approximately 925 to 1,556 barrels per day (bbl/d).
Well Performance Management: Studies focusing on the Montney formation indicate that the first 6 to 10 months of production are critical for assessing well performance, with initial production rates serving as key indicators of long-term output.
2. Clearwater Formation:
- Initial Production (IP) Rates:
- Wells drilled in the first quarter of 2022 reported average 30-day initial production rates of approximately 772 bbl/d per well.
- Wells drilled in the first quarter of 2022 reported average 30-day initial production rates of approximately 772 bbl/d per well.
Considerations:
Decline Rates: It's important to note that initial production rates typically decline over time. The rate of decline varies based on reservoir characteristics, completion techniques, and operational practices.
Economic Viability: High initial production rates can enhance the economic viability of a project, but operators must also consider factors such as drilling and completion costs, commodity prices, and operational expenses.
Regulatory Compliance: Operators are required to adhere to regulations set forth by the Alberta Energy Regulator (AER), which oversees well licensing, production reporting, and environmental considerations.
Drilling Costs
- Cost per well: $1.5–$2.5 million (depending on depth, lateral length, and formation)
- 10 wells total: $15–$25 million
2. Completion Costs
- Includes hydraulic fracturing, casing, and perforation.
- Cost per well: $1.5–$3 million
- 10 wells total: $15–$30 million
3. Pad Construction Costs
- Lease Preparation: $200,000–$500,000
- Pad Infrastructure: $300,000–$800,000 (e.g., roads, water access, and power)
- Pad Total: $500,000–$1.3 million
4. Infrastructure Costs
- Pipeline Connection: $200,000–$500,000 (varies by proximity to existing networks)
- Processing Facilities (e.g., separators, tanks): $500,000–$2 million
- Infrastructure Total: $700,000–$2.5 million
5. Operating Costs (Year 1)
- Lifting Costs: $5–$10/boe (barrel of oil equivalent)
- Production Volume: Assume ~1,000 boe/day per well (initial production) × 10 wells = 10,000 boe/day
- Annual Operating Cost: $18.25 million ($5/boe × 10,000 boe/day × 365 days)
6. Total Low-Cost Estimate
| Category | Cost (Low End) | Cost (High End) |
|---|---|---|
| Drilling | $15 million | $25 million |
| Completion | $15 million | $30 million |
| Pad Construction | $500,000 | $1.3 million |
| Infrastructure | $700,000 | $2.5 million |
| Operating (Year 1) | $18.25 million | $36.5 million |
| Total | $49.45 million | $95.3 million |
When you purchase ENRC from a token pool, you are acquiring a digital token that represents a dynamic opportunity within the Energy Chain ecosystem. This token's value is determined by the cryptocurrency market, reflecting the collective evaluation of Energy Chain's cash flow, assets, and potential.
ENRC is backed by a diverse portfolio of staked oil and gas reserves, prepaid accounts for energy industry goods and services, and actively producing energy projects. By owning ENRC, you gain access to a cryptocurrency that integrates into a cutting-edge framework designed to drive innovation, liquidity, and efficiency in the energy sector.
Your investment is in the token itself—not an interest in the specific token pool, ownership shares, profit participation, or interest payments. Instead, ENRC offers a pathway to participate in a decentralized economy that evolves with market dynamics and Energy Chain's growth in the energy industry.
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