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Canadian Oil Stocks: Top 5 Cardium Oil Juniors �
Canadian Oil Stocks: Top 5 Viking Oil Juniors
Canadian Oil Stocks, Canadian Stocks, Viking Oil
The Viking oil resource play is an established light oil conventional play which is only second to the Cardium oil play when it comes to original oil in place (OOIP). The Viking oil play 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 (TSE:WFE)
Viking Land: 247 net sections
WestFire has a strong leverage to the light oil Viking resource play with about 247 net sections mainly in WC Saskatchewan (Plato & Dodsland) and Alberta (Redwater & Provost). The company has a large and increasing inventory of low risk light oil focused drilling opportunities. WFE exited 2010 with production of 3,500 boe/d (60% oil) and plans on exiting 2011 with 5,000 boe/d weighted approximately 75% to oil as it executes an aggressive drilling program this year.
Novus Energy (TSXV:NVS)
Viking Land: 110 net sections
Novus is largely focused on the Viking light oil resource play where it assembled a drilling inventory of 575 potential net locations at Dodsland, WC Saskatchewan. This inventory could be doubled to 1,150 locations if well density is increased from 8 wells per section to 16 wells per section. Novus exited 2010 with production of 2,050 boe/d (66% oil) and is guiding for a 2011 exit at 3,000 boe/d (85% oil) by focusing on its repeatable, low risk and highly economic Viking resource play in West Central Saskatchewan.
Compass Petroleum (TSXV:CPO)
Viking Land: 65 net sections
Compass accumulated a large, multi-year inventory of over 150 net Viking horizontal drilling locations in Dodsland, WC Saskatchewan. Production as of February 2011 was about 1,250 boe/d (>75% oil) and the company is guiding for a June 30, 2011 exit production rate of 1,350 boe/d to 1,450 boe/d.
Kallisto Energy (TSXV:KEC)
Viking Land: 30 net sections
Kallisto is another junior producer with a high exposure to the Viking oil play. The company has more than 100 net drilling locations for Viking light oil in its 30+ net sections of land at Crossfield, Alberta. KEC expects to complete its first operated Crossfield Viking well by the end of March. Results will contribute to the company's capex and guidance for 2011.
Petro Viking Energy (TSXV:VIK)
Viking Land: 10 net sections
Petro Viking is a new comer on the TSXV and just like the name suggests, it has a pure Viking light oil focus. The company has a 20% working interest in 44 sections of land in Brock, south of Dodsland in West Central Saskatchewan with an option to acquire additional WI. WestFire Energy is the operator and JV partner on 42 out of 44 sections in Brock while VIK is the operator on 2 sections of land in Plato, south east of Brock.
The 5 junior oil producers listed above are highly leveraged to the Viking oil play because it constitutes the core of their development programs through 2011 and beyond. 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.
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