Alberta Plains North
The Alberta Plains North core area holds 19 percent of Zargon's proved and probable oil and liquids reserves and 85 percent of Zargon's proved and probable natural gas reserves. During 2011, the most significant oil exploitation projects will include a multi-frac horizontal drilling test program at Hamilton Lake targeting large Viking oil-in-place, along with the step-out development and the eventual waterflood of a new Glauconite oil pool at Jarrow (Killam). Facility and pumping optimizations at Bellshill Lake, Killam South and Provost will also provide additional oil volumes. Smaller but profitable oil exploitation initiatives will be pursued at the Brazeau Nisku, Carrot Creek Cardium, Highvale Banff and Spirit River Gething properties.
Alberta Plains North provided 88 percent of total natural gas production in 2010, primarily from the Jarrow, Hamilton Lake, Highvale and Progress areas. In 2011, selective investments in facility optimization projects will maximize returns from these natural gas properties. Zargon will also pursue sale, farmout and swap transactions on its large undeveloped land base to maximize returns and create a more concentrated property footprint.