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Case Studies

Cross-Block Oil Migration Litigation Support

An oil pool had been divided into two licensed production areas; the claimant operated the north and the client operated the south. The south area had been more aggressively developed, and the claimant alleged that the client’s operations had resulted in oil migration from the north to the south and sought compensation. Independent expertise was required to resolve the dispute.

Project Highlights

  • 539 wells reviewed
  • Acted as an advisor and expert witness on behalf of the defendant
  • No damages awarded
  • Provided geotechnical and production operations expertise

Challenge

  • An oil pool had been divided into two licensed production areas; the claimant operated the north area and the client operated the south
  • The south area had been more aggressively developed, and the claimant alleged that the client’s operations had resulted in oil migration from the north to the south
  • The claimant was seeking compensation for this loss

Solution

  • Sproule developed a comprehensive understanding of the production history and oil flow in the pool by conducting an independent geological reservoir study, by reviewing drilling and production history, and by creating a 3D dynamic reservoir simulation model
  • Sproule offered an opinion on the production practices of the client and provided expert witness testimony
  • Sproule also reviewed and provided a counter opinion to the claimant’s expert witnesses

Value

  • In Sproule’s opinion, the defendant had used good production practices in their development of the pool
  • Sproule defended this opinion on behalf of the client in numerous legal proceedings, with the result that the client was not found liable for any damages
Alec Kovaltchouck, P. Geo.
Vice President, Geoscience

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