Natural Gas Production Operations
Ember has over 2.6 million gross (2.2 million net) acres of highly contiguous land inventory, producing more than 300 million cubic feet per day of sweet, dry Alberta natural gas extracted from coal.
300 MMCF/D IN NATURAL GAS PRODUCTION
We are Canada’s leader in CBM production with over 9,800 wells of predictable and scalable low-risk, low-cost CBM production and an extensive natural gas inventory behind pipe.
Building on years of successful and repeatable low-cost execution, our coalbed methane (CBM) natural gas operations are focused in the Horseshoe Canyon coals of Alberta – one of North America’s lowest-cost unconventional gas plays.
In January 2015, Ember acquired over 1.2 million net acres and over 6,800 producing wells of Clearwater lands from Encana Corp. Added to our existing acreage and the 621,000 acres acquired from Apache Corp. in October 2013, Ember has 2.2 million net acres (over 2.6 million gross) of highly contiguous land inventory.
SWEET, CLEAN AND DRY NATURAL GAS PRODUCTION
Ember’s Horseshoe Canyon wells are shallow coals in central Alberta. Coalbed methane produced from Horseshoe Canyon is ‘sweet, clean and dry’ natural gas that is a near pipeline-quality right out of the ground. From the moment it is extracted from coal seams, our gas is ready for consumer use.
- Sweet – does not contain hazardous hydrogen sulphide (H2S).
- Clean – is widely recognized as the cleanest burning fossil fuel produced today.
- Dry – the source coal formations of Horseshoe Canyon contain little to no water so methane production begins as soon as the formation is drilled.
LOW COST SHALLOW DRILLING WITH LONG-LIFE RESERVES
Our CBM shallow drilling is quick, efficient and has minimal land disturbance. Drilling to shallow depths of only 650 – 1,200 metres in an average of two drilling days from spud to rig release, our CBM wells cost approximately $160,000 – $190,000 per well to drill.
New wells produce at initial rates of approximately 90 mcf/d of natural gas and produce for 25 – 30 years. As a result, the company has a low current corporate production decline rate of about 8% – almost half the decline rate and twice the reserve life of our nearest gas-producing competitor.
CAPITAL EFFICIENCIES, PREDICTABLE METRICS
Every $0.10/mcf increment in the natural gas prices equals an additional $9.7 MM in cash flow for Ember.
At Ember, we mitigate CBM’s relatively lower netbacks through rigorous cost control and low FD&A costs resulting in recycle ratios at or better than best-in-class gas weighted peers. Our low cost structure positions Ember to benefit from increases in natural gas pricing.
Ember was built to be profitable in a $3.00 – $4.00/mcf gas price environment. Our full cycle cost structure of $2.90/mcf (including capital, operating and royalty costs) make us operationally efficient and highly competitive. At approximately $1.35/mcf in operating costs, we are well positioned to generate free cash flow and deliver significant cost effective growth – even in challenging commodity price environments.