Alberta Plains South
The Alberta Plains South core area holds 28 percent of Zargon's proved and probable oil and liquids reserves and contributed 27 percent of 2010 oil and liquids production. During 2010, Zargon made significant progress with the horizontal development of the Taber South Sunburst (Mannville A) pool. Exploitation activities this year will include further horizontal development drilling, implementation of a waterflood secondary recovery project and step-out drilling to expand pool boundaries and exploit newly acquired assets. At Grand Forks, oil exploitation will include facility optimization, development drilling and modifications to enhance oil recoveries.
The largest and most important property is Little Bow with its tertiary oil recovery opportunities plus a number of waterflood and production optimization projects. Over the last two years, Zargon assembled assets at Little Bow through a number of property and corporate acquisitions, that also consolidated a position in an Alkaline Surfactant Polymer ("ASP") project. In 2011, planning, design and sanctioning steps for the first phase of the ASP flood are expected to be completed, leading to field construction in mid 2012.