Weyburn Unit - Saskatchewan
The Weyburn Unit is located approximately 129 kilometers southeast of Regina, Saskatchewan. The Unit encompasses approximately 53,360 gross (net 824) acres in which the Mississippian Midale beds are unitized. Franco-Nevada holds a 1.11037% working interest and a 0.44% royalty interest in the Weyburn Unit. Production commenced from the Midale zone within the unitized area in 1955 under primary depletion (solution gas expansion). Formation of the Unit occurred in 1963 for the purpose of implementing an inverted nine-spot waterflood pressure maintenance scheme on 80 acre well spacing.
Cumulative oil production of the Unit as of the December 31, 2007 effective date is estimated to be 413 MMbbls, or 29.5% of the OOIP of 1,402 MMbbls recognized by GLJ. Ultimate reserves for the Weyburn Unit are forecasted by GLJ to be 635 MMbbls in the proved plus probable reserves case. Produced oil within the Unit averages 28 to 31 degrees API and contains approximately 2% sulphur.
A CO2 miscible flood was initiated in 1996 and initial CO2 injection began in October 2000. For the 11 day period ended December 31, 2007, production net to the Oil & Gas Interests was 390 Bbls/d. Franco-Nevada takes product-in-kind for the working interest portion of this production and markets it through a third party marketer. As of December 31, 2007, net proved reserves to the Oil & Gas Interests were 2,041 Mbbl.