The Viking oil play is an established light oil conventional play which is only second to the Cardium formation when it comes to original oil in place (OOIP). This oil bearing formation has already been delineated with vertical drilling in WC Saskatchewan as it has been known since its discovery in 1957. With the advent of horizontal drilling and advanced completion techniques (multistage fraccing) it is now possible to tap oil trapped in thick shaly intervals that was once deemed uneconomic to exploit. Most of the land is locked up by major producers but a few juniors managed to assemble notable positions.
WestFire Energy wfe.to $N/A [N/A] (Merged with Long Run Exploration)
Viking Land: 232 net sections
WestFire Energy has a strong leverage to the Viking light oil play with 148,500 net acres mainly in WC Saskatchewan (Plato & Dodsland) and Alberta (Redwater & Provost). The company assembled an extensive drilling inventory of 916 net locations of low risk light oil focused development opportunities. WFE is guiding for 9,750 boepd (71% oil) in average production for 2012 as it executes an aggressive drilling program this year which is a significant increase over 2011’s average production rate of 5,809 boe/d. The company is currently exploring strategic alternatives with a view to enhancing shareholder value and is currently trading at a significant discount to its Net Asset Value of $8.71/share at December 31, 2011 as reported by the company.
Novus Energy nvs.v $N/A [N/A] (Acquired by Chinese Company Yangchang)
Viking Land: 121 net sections
Novus Energy is largely focused on the Viking light oil resource play where it assembled a drilling inventory of 615 net locations at Dodsland, WC Saskatchewan. This inventory could be doubled to 1,230 locations if well density is increased from 8 wells per section to 16 wells per section. Novus produces more than 4,000 boe/d weighted 77% to oil. It is exclusively focusing on its repeatable, low risk and highly economic Viking light oil resource play in Dodsland, West Central Saskatchewan. With a Net Asset Value reported at $1.64 at December 31, 2011, Novus is currently trading at a significant discount.
Raging River Exploration rrx.to $8.07 [-0.03]
Viking Land: 270 net sections
Raging River Exploration was created through the spin out of Wild Stream Exploration’s (WSX) assets in Dodsland, SW Saskatchewan. This junior producer is 97% oil weighted and is exclusively focused on the Viking oil play with more than 155 net sections of land prospective for this play. The company has more than 2,600 net drilling locations for Viking light oil and expects to exit 2015 at more than 15,000 bopd (97% oil) which represents a 15x growth from its Jan 1, 2012 volumes of 1,000 boepd.
Compass Petroleum (Acquired by Whitecap Resources)
Viking Land: 75 net sections
Compass accumulated a large, multi-year inventory of over 150 net Viking horizontal drilling locations in Dodsland, WC Saskatchewan. Production as of September 2011 was about 800 boe/d (78% oil) and the company is guiding for a June 30, 2012 exit production rate of 1,300 boe/d to 1,400 boe/d.
3MV Energy tmv.v $0.01 [+0.00]
Viking Land: ~30 net sections
3MV Energy is a pure Viking light oil player with its core asset of about 30 net sections at Fiske in the Kindersley area in West Central Saskatchewan. It’s first well averaged over 100 bbl/d of light oil for its first month of production which is above the average rates expected in the Kindersley area. The company currently produces more than 140 boepd weighted 98% to oil.
Toro Oil & Gas too.v $0.365 [+0.000]
Viking Land: 122 net sections
Toro is a junior player positioned for growth thanks to a substantial drilling inventory in the prolific Alberta Viking fairway. The company identified more than 150 low risk development locations. The company currently produces over 550 bopd of 35 degree API Viking light oil.
Sure Energy shr.to $N/A [N/A] (Acquired by Tamarack Valley)
Viking Land: 35 net sections
Sure Energy is not a pure player when compared to its peers but its Viking oil production is at the heart of its growth. The company holds about 17,000 net acres of land at Redwater, Alberta where it assembled a low risk development inventory of 72 locations. Sure also holds 9 sections at Virginia Hills Alberta with the potential 72 locations at 8 wells per section targeting the Viking formation. The company currently produces 1,410 boe/d with a 63% oil and liquids weighting. For 2012, 71% of its capital expenditures will be targeting Viking oil at both Redwater and Virginia Hills.
The 5 junior oil producers listed above are highly leveraged to the Viking oil play because it constitutes the core of their development programs. These companies have experienced management teams, high working interest and an operated development inventory of low risk high quality drilling locations.
Disclaimer: the information presented above is only for informative purposes; it’s meant to serve as a starting point to carry your own due diligence. It is in no way an encouragement to buy or sell the aforementioned securities. If you find any errors in the data please do not hesitate to contact us using the appropriate form or by leaving a comment.