The Viking Formation has been recognized since 1918 as both a light oil and natural gas bearing sandstone. With the TVD depth of the Viking being the shallowest of the Light Oil plays, and new technology allowing for better recovery from tight formation, the activity level continues to ramp up.
Past Exploration (upper Viking):
Over 8000 vertical wells drilled since the 1950s
Production from the upper Viking sand estimated at two billion barrels
Present Exploration (lower Viking):
Advancements in technology have revealed a lower, and thicker, Viking Sand estimated at another four billion barrels
Horizontal drilling and multi-stage fracture techniques allow for lower costs when accessing the reserves
As of recent, Viking wells have been drilled, completed and equip for under $1 million
Quicker payouts quick due to low costs
With low operating costs in the Viking Sand it’s not a surprise to see major producers such as Devon Energy Corp., Husky Energy, Pengrowth Energy, as well as Penn West Exploration all seeking this asset. In addition to the majors, many juniors have stayed active as the risk to reward has proven to be in their favor.
Due to the low operating costs, to get a Viking well drilled and to the production stage, the Recycle Ratio for this play is very attractive and will continue to be this way, even with subpar oil and gas prices. Much like the Cardium formation, expect companies to increase their activity in the Viking and let this, almost guaranteed, cash flow in.
With Cordax's LWT system, Open hole logs can be obtained safely and cost effectively in any HZ well. This allows full optimization of these new completions techniques to get the most out of every well.
