Operator: Cenovus Energy Inc.
Royalty: NRI: 11.71% / ORR: 0.44% / WI: 2.56%
The “Weyburn Unit” is located approximately 129 km southeast of Regina, Saskatchewan and encompasses approximately 216 km2 on a gross basis (net 31 km2) in which the Mississippian Midale beds are unitized. As of December 31, 2015, Franco-Nevada held an 11.71% NRI, a 0.44% ORR and a 2.56% WI 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 Weyburn Unit occurred in 1963 for the purpose of implementing an inverted nine-spot waterflood pressure maintenance scheme on 80 acre well spacing. In 2000, Cenovus, the operator, began injecting CO2 in a portion of the Weyburn Unit as an enhanced oil recovery (“EOR”) method. Some of the injected CO2 remains in the reservoir and the Weyburn Unit is recognized as one of the world’s largest geological CO2 storage projects.
Current gross production of the Weyburn Unit is approximately 25,000 Boe/d at an average water cut of 88.0%. Produced oil within the Weyburn Unit averages 31 degrees API and contains approximately 2.2% sulphur.
For 2015, revenue received by Franco-Nevada from the Weyburn Unit was $21.1 million. Oil production, including NGLs, net to Franco-Nevada was 1,477 Boe/d. Franco-Nevada takes product-in-kind for its WI and NRI share of this production and markets it through a third party marketer. As of December 31, 2015, Franco-Nevada’s Proved Reserves for the Weyburn Unit were 20,777 Mboe.
|Total Revenue to FNV ($ million)