Natural gas production operations
Ember has over 2.2 million gross (2.0 million net) acres of highly contiguous land, producing more than 275 million cubic feet per day gross (245 net) of sweet, dry Alberta natural gas.
275 MMCF/D IN NATURAL GAS PRODUCTION
Our locally produced unconventional natural gas is a low-cost, long-life natural gas resource. As an active consolidator of shallow gas assets in the Western Canadian Sedimentary Basin with strong partners and exceptional assets, we are focused on energy for future generations.
Ember has over 2.2 million gross (2.0 million net) acres of highly contiguous land, producing more than 275 million cubic feet per day gross (245 net) of sweet, dry Alberta natural gas. Ember’s growth has been supported by scalable and repeatable drilling success, significant expansion through accretive acquisitions and low-risk, long-life reserves of 25-30 years.
We have significant leverage to natural gas prices and are ideally positioned to continue expanding. Ember’s large inventory of shallow gas development opportunities and owned infrastructure gives us the flexibility to develop half-cycle opportunities, and our lowest-cost drilling locations to keep gas production stable and generate significant free cash flow.
100% SHALLOW GAS
Shallow gas production is our singular focus. This means we have all eyes on our wells, all the time, allowing us to dedicate the requisite attention to operate at peak efficiency.
Our over 11,000 shallow gas wells provide reliable production with minimal maintenance. Our real-time SCADA control systems allow us to instantly monitor our facilities and thousands of wells concurrently to troubleshoot potential problems before they occur, schedule regular clean-out of residual water to maximize production, and even remotely stop or start production. By minimizing routine site visits we reduce operating costs and diminish environmental impact from site traffic.
SWEET, CLEAN AND DRY NATURAL GAS PRODUCTION
Ember’s wells are shallow gas wells located in south-central Alberta. Shallow gas produced from the Horseshoe Canyon formation is ‘sweet, clean and dry’ natural gas that is a near pipeline-quality right out of the ground.
- Sweet – does not contain hazardous hydrogen sulphide (H2S) or other contaminants.
- 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 completed.
LOW COST SHALLOW DRILLING WITH LONG-LIFE RESERVES
Our shallow gas drilling is quick, efficient and has minimal land disturbance. Drilling to shallow depths of 650-1,200 metres in an average of two drilling days from spud to rig release, our shallow gas wells cost approximately $275,000 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 less than 5%. Management believes, based on research completed by a third-party regarding its peers, to be among the lowest decline rates for natural gas in the WCSB.
CAPITAL EFFICIENCIES, PREDICTABLE METRICS
Every $0.10/mcf increment in the natural gas prices equals an additional $9 MM in revenues for Ember.
At Ember, we mitigate shallow gas’s relatively lower revenues through rigorous cost control and low FD&A costs. Our low cost structure positions Ember to benefit from increases in natural gas pricing.
Ember was built to be profitable in today’s gas price environment. Ember’s all-in unlevered break-even realized natural gas price is $2.30/Mcfe (including transportation costs to AECO, operating costs and G&A expense but before royalties estimated at 7.5% of AECO pricing).