Hunt Succeeds Before Energy Resources Conservation Board In Competitive Drainage Case

Copyright 2009, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Energy, January 2009

Introduction

On December 23, 2008, the Energy Resources Conservation Board (the ERCB) issued its decision in an application by Hunt Oil Company of Canada, Inc. (Hunt) (represented by Blakes) pursuant to section 39(1)(a) of the Oil and Gas Conservation Act (the OGCA) to amend its enhanced recovery scheme, by adding two water injection wells to the Kleskun Beaverhill Lake A Pool (the A Pool). Hunt also applied to the ERCB, pursuant to section 33 of the OGCA, to include wells currently designated to the Puskwaskau Beaverhill Lake C Pool (the C Pool), in the A Pool. Galleon Energy Inc. (Galleon) filed an objection to the first application on the basis that the proposed injection wells could result in premature water breakthrough because of high-permeability channels in the A Pool, and that injecting water into updip wells in a reservoir where there is an