Petrolia Inc., a Quebec-based junior oil and gas exploration company, aimed to unlock the potential of unconventional shale oil and gas resources within the Macasty Shale Formation. This formation is a stratigraphic counterpart to the highly productive Utica Shale, a renowned unconventional development target in the Appalachian Basin of the northeastern United States.Sproule provided a full-scale resource assessment, utilizing advanced petrophysical and petroleum system modeling techniques. Despite limited data and an untested play, the project demonstrated the viability of Anticosti Island as a prospective shale oil resource.
Project Highlights
- Macasty Shale Gas Formation on Anticosti Island
- Comprehensive Resource Evaluation
- NI 51-101 Compliance Report
- Successful TSX Listing
Challenge
- Limited Data Availability: With only nine wells and 1,400 km of 2D seismic data across a large 8,000 km2 area, the available dataset was sparse and inconsistent. The scarcity of geological and seismic data made it challenging to form an accurate and dependable understanding of the subsurface.
- Untested Play & Geological Complexity: The Macasty Shale was a relatively untested play, leading to higher uncertainty regarding the resource potential. Since this formation had not been extensively explored or drilled, there were no prior benchmarks or results to guide the assessment. Additionally, the complex thermal history and burial depth of the basin presented further challenges, complicating the ability to predict the presence and characteristics of hydrocarbons.
Solution
- Holistic Assessment Methodology: Sproule developed a robust and integrated methodology, combining petrophysical well log interpretation with petroleum system modeling (PSM).
- Advanced Basin Modeling: The team modeled the thermal and burial basin history to evaluate hydrocarbon generation and migration, integrating diverse datasets such as seismic, wireline well logs, pyrolysis and fission tracks. This enabled Sproule to predict fluid composition, organic matter content, and the amount of trapped and expelled hydrocarbons.
- Probabilistic Evaluation: Sproule’s evaluation incorporated probabilistic methods, merging conventional well-based mapping with PSM results to capture a reasonable range of estimates for resource potential.
Value
- Data Integration & Confidence: A holistic methodology allowed for thorough resource evaluation, by integrating available seismic, well, and core data to provide a range of estimates which accounted for uncertainties in the evolving shale paly.
- Regulatory Compliance & Market Credibility: The project’s final report was NI 51-101 compliant, which is critical for listing on the Toronto Stock Exchange (TSX) and maintaining regulatory transparency.
- Ongoing Validation: Sproule’s 2012 assessment was later confirmed by the results of a well drilled in 2015. This validation increased the client’s trust in the assessment process and further solidified the viability of the Macasty Shale as a prospective resource.
