In 2014, Long Run established its Deep Basin core area through two strategic acquisitions, creating a third core development area primarily focused on Cardium light oil and liquids-rich natural gas. The Deep Basin area is comprised of the Pine Creek and Wapiti producing regions.  

Pine Creek

The Deep Basin – Pine Creek region is divided in to the Pine Creek and Edson properties which are characterized by high-quality, liquids-rich natural gas and light oil production primarily from the Cardium formation with some additional liquids-rich natural gas production from the Bluesky formation.

Average Pine Creek Cardium wells are 1,800m to 1,900m in total vertical depth. Two primary members of the Cardium Formation are productive - the Raven River and the Burnstick Members.  The Raven River Member is a lower to upper shoreface that consists mostly of fine grained sandstones with some conglomerates and siltstones, that is currently being exploited through H.M.S.F. The Burnstick Member is a transgressive, incised shoreface deposit consisting of a pebbly conglomerate in a coarse sandstone matrix that can be drilled and produced vertically. Cardium exploitation began in the Pine Creek area as early as the 1970’s (Cardium B). Recent advancements in drilling and completion technologies have proved profitable for the finer grained and tighter Cardium A.

As a result of the solid well economics, the Pine Creek area is a strong growth property for the company. In addition, the Pine Creek area has exploration upside in the Wilrich, Notikewin, Viking, Second White Specks and Belly River formations, further enhancing the area’s growth and development potential.

Long Run’s significant ownership of operated gathering and processing infrastructure, including 50 MMCf/d of natural gas handling, oil batteries, pipeline gathering systems, connection to the Alliance pipeline and working interest in the Talisman plant, creates opportunities to maximize operational efficiencies while simultaneously reducing corporate reliance on third party facilities, establishing significant visibility to the growth and expansion of Long Run’s position in the area.

Wapiti

The Deep Basin – Wapiti region is divided into the Kakwa and Wapiti properties which are predominantly focused on Cardium liquids-rich natural gas production. The primary reservoir in the area is the Cardium Kakwa sand which is a shoreface sandstone deposited along the western margin of the Western Canadian Foreland Basin and is characterized by its fine to medium-grained sandstone. The reservoir is very predictable and well-defined with abundant existing vertical well control. Furthermore, the relatively uniform thickness and porosity of this zone lends itself well to horizontal drilling with repeatable results.

The Kakwa sand contains liquids-rich natural gas and occasional light oil pools with additional upside in the oil bearing Cardium Musreau member above. Long Run also has additional prospects in the region, notably the Falher, Cadotte and Dunvegan formations at Kakwa and the Belly River formation at Wapiti.