Petrobank Energy and Resources
Encyclopedia
Petrobank is an oil exploration, development, and production company based in Calgary, Canada. It operates through 4 units/subsidiaries, PetroBakken Energy (58% owned subsidiary) in Canada, Petrominerales Ltd (was 65% owned until December 31, 2010 when both company's parted ways through a reorganization) in Peru and Colombia, HBU (100% owned subsidiary started in 2006) in the heavy oil
business, and its technology unit Archon Technologies Ltd (THAI® and CAPRI™).
In 1986 the company changed its name from Petrobank Energy Resources Ltd. to Petrobank Energy and Resources Ltd. Though it has a significant resource base its ten patents for heavy oil extracting technology are becoming increasingly valuable to the company. In December 2010 the company received permission from the government of Alberta to produce oil sands bitumen at a new location in Dawson using a technique known as fireflooding, the third Petrobank operation that will use it; the 50% interest in Dawson was acquired in October from Shell Canada.
Revenue was about three times higher (1.1 versus 0.415 billion) and conventional oil production rate twice as much (83.9 versus 42.5 thousand bbl/d) in the first half of 2010 compared to the first half of 2009 (the large increase in total revenue during that period can be credited equally to PetroBakken and Petrominerales, each rising 160-170%). Compared to the last quarter of 2009 the second in 2010 had 40% more revenue, 60% more operating income and a 24.1% rise in asset value compared to only 4.6% for long term debt. PetroBakken operations produced 3.5% more barrels of oil equivalent than Petrominerals in the first half of 2010 compared to 4.6% less a year earlier (by the third quarter PetroBakken 40,095 boe per day (most light oil) . Though not yet a significant producer when compared to PetroBakken and Petrominerales, the HBU heavy oil division has the largest contingent resource base in terms of both net present value and total resources. Every year since 2006 the share of Petrobank's total resources attributable to Petrominerales has grown progressively smaller (mostly because of PetroBakken's more rapid growth (145% growth in net present value in 2009 compared to 69% for Petrominerales).
Its Whitesands operations (subsidiary Whitesands Insitu Inc, HBU heavy oil) may contain 1.8-2.6 billion barrels of oil. Only PetroBakken produces natural gas.
Petrobank's Toe to Heel Air Injection process uses no water, has a smaller environmental impact and should hypothetically recover more oil by being more effective in bringing deep heavy oil bitumen deposits to the surface. Most of the estimated 8.9 trillion barrels in bitumen and heavy oil in places like Russia, Venezuela and Colombia can't be recovered using current technology.
The technology has either already been applied or is being experimented with at locations in Kerrobert
, Sutton, Saskatchewan, White Sands, May River, Dawson, Conklin, Alberta
.
The process uses air that is injected deep underground to initiate combustion in the reservoir. The heat from the advancing combustion front warms the oil, making it easier to recover up a horizontal production well.
According to engineering firm McDaniel and Associates Consultants Ltd. the THAI® technology developed by Petrobank has the potential to exploit 17% more bitumen than SAGD
..
THAI® is an evolutionary new configuration for in situ combustion that combines a horizontal production well with a vertical air injection well placed at the toe. While most in situ and SAGD processes use a tremendous amount of steam to heat the entire well, THAI® uses a relatively insignificant amount to heat the bitumen around the well bore. After the area is at optimal temperature, air is then injected into the well. As the air reaches the heated source, it initiates a combustion reaction. More air is then injected into the reservoir and the vertical combustion front progresses along the horizontal well pushing all the oil in advance of itself. As the temperature increases inside of the well, the heavy oil is partially upgraded by the cracking of the large hydrocarbon chain. This makes the oil less viscous and allows for a more efficient flow towards the surface (Petrobank Energy and Resources 2009).
Petrominerales became independent of Petrobank on December 31, 2010
Heavy oil
Heavy oil may refer to:*Fuel oil that contains residual oil left over from distillation.*Heavy crude oil, viscous crude oil.*Coal tar creosote, a wood preservative and waterproofing agent....
business, and its technology unit Archon Technologies Ltd (THAI® and CAPRI™).
In 1986 the company changed its name from Petrobank Energy Resources Ltd. to Petrobank Energy and Resources Ltd. Though it has a significant resource base its ten patents for heavy oil extracting technology are becoming increasingly valuable to the company. In December 2010 the company received permission from the government of Alberta to produce oil sands bitumen at a new location in Dawson using a technique known as fireflooding, the third Petrobank operation that will use it; the 50% interest in Dawson was acquired in October from Shell Canada.
Revenue was about three times higher (1.1 versus 0.415 billion) and conventional oil production rate twice as much (83.9 versus 42.5 thousand bbl/d) in the first half of 2010 compared to the first half of 2009 (the large increase in total revenue during that period can be credited equally to PetroBakken and Petrominerales, each rising 160-170%). Compared to the last quarter of 2009 the second in 2010 had 40% more revenue, 60% more operating income and a 24.1% rise in asset value compared to only 4.6% for long term debt. PetroBakken operations produced 3.5% more barrels of oil equivalent than Petrominerals in the first half of 2010 compared to 4.6% less a year earlier (by the third quarter PetroBakken 40,095 boe per day (most light oil) . Though not yet a significant producer when compared to PetroBakken and Petrominerales, the HBU heavy oil division has the largest contingent resource base in terms of both net present value and total resources. Every year since 2006 the share of Petrobank's total resources attributable to Petrominerales has grown progressively smaller (mostly because of PetroBakken's more rapid growth (145% growth in net present value in 2009 compared to 69% for Petrominerales).
Its Whitesands operations (subsidiary Whitesands Insitu Inc, HBU heavy oil) may contain 1.8-2.6 billion barrels of oil. Only PetroBakken produces natural gas.
Acquisitions/Divestments
- In May 2009 the parent company reduced its ownership in petrominerales from 76.9% to 66.8%.
- In August 2009 Petrobank purchased tristar oil and gas ltd in a 2.24 billion dollar deal. It then formed PetroBakken by combining its Canadian operations with the tri star oil and gas division.
- In the third quarter of 2010 the company purchased the 50% interest Baytex Energy Ltd.’s and Shell Canada had in Kerrobert and Dawson's heavy oil projects and advanced operations at Kerrobert (phase 1 expansion was started, phase 1 production grew to 380 bpd in November, phase 2 construction began). Petrobank's advanced and patented (holds multiple THAI® technology related patents abroad) heavy oil extraction technology gives it a strong interest in enlarging its heavy oil asset base.
- On October 19, 2010 it was reported that Petrobank Energy purchased half of the Dawson heavy oil project from Shell CanadaShell CanadaShell Canada Limited is the subsidiary of Dutch-based Royal Dutch Shell and one of Canada's largest integrated oil companies. Exploration and production of oil, natural gas and sulphur is a major part of its business, as well as the marketing of gasoline and related products through the company's...
. The transaction (which included a couple other assets) cost C$15 million in net cash. - As of December 31, 2010 Petrobank's spinoff of its 65% Petrominerales stake will be completed. The new independent company will be called New Petrominerales. Rather than being compensated with cash Petrobank shareholders will each receive 0.614 shares of New Petrominerales for each Petrobank share they own while each shareholder of Petrominerales (before the reorganization) will receive 1 share of the new company.
THAI® technology
As compared to Steam assisted gravity drainageSteam assisted gravity drainage
Steam Assisted Gravity Drainage is an enhanced oil recovery technology for producing heavy crude oil and bitumen. It is an advanced form of steam stimulation in which a pair of horizontal wells are drilled into the oil reservoir, one a few metres above the other...
Petrobank's Toe to Heel Air Injection process uses no water, has a smaller environmental impact and should hypothetically recover more oil by being more effective in bringing deep heavy oil bitumen deposits to the surface. Most of the estimated 8.9 trillion barrels in bitumen and heavy oil in places like Russia, Venezuela and Colombia can't be recovered using current technology.
The technology has either already been applied or is being experimented with at locations in Kerrobert
Kerrobert, Saskatchewan
Kerrobert is a town in west central Saskatchewan. Incorporated in 1910, its 2007 population was 1,011. This quaint small town is home of the Kerrobert Tigers. The town is known for its large water tower, clearly visible from 15 kilometres away....
, Sutton, Saskatchewan, White Sands, May River, Dawson, Conklin, Alberta
Conklin, Alberta
Conklin is a hamlet in northern Alberta, Canada within the Regional Municipality of Wood Buffalo. It is located on Highway 881 between Fort McMurray and Lac La Biche. It has an elevation of .The hamlet is located in census division No...
.
The process uses air that is injected deep underground to initiate combustion in the reservoir. The heat from the advancing combustion front warms the oil, making it easier to recover up a horizontal production well.
According to engineering firm McDaniel and Associates Consultants Ltd. the THAI® technology developed by Petrobank has the potential to exploit 17% more bitumen than SAGD
Steam assisted gravity drainage
Steam Assisted Gravity Drainage is an enhanced oil recovery technology for producing heavy crude oil and bitumen. It is an advanced form of steam stimulation in which a pair of horizontal wells are drilled into the oil reservoir, one a few metres above the other...
..
THAI® is an evolutionary new configuration for in situ combustion that combines a horizontal production well with a vertical air injection well placed at the toe. While most in situ and SAGD processes use a tremendous amount of steam to heat the entire well, THAI® uses a relatively insignificant amount to heat the bitumen around the well bore. After the area is at optimal temperature, air is then injected into the well. As the air reaches the heated source, it initiates a combustion reaction. More air is then injected into the reservoir and the vertical combustion front progresses along the horizontal well pushing all the oil in advance of itself. As the temperature increases inside of the well, the heavy oil is partially upgraded by the cracking of the large hydrocarbon chain. This makes the oil less viscous and allows for a more efficient flow towards the surface (Petrobank Energy and Resources 2009).
Operations
- PetroBakken (operates Bakken and Cardium light oil developments)
- Montney and the Horn River Basin, B.C. - Shale gasShale gasShale gas is natural gas produced from shale. Shale gas has become an increasingly important source of natural gas in the United States over the past decade, and interest has spread to potential gas shales in the rest of the world...
- Southeast Saskatchewan - Light crude oilLight crude oilLight crude oil is liquid petroleum that has a low density and flows freely at room temperature. It has a low viscosity, low specific gravity and high API gravity due to the presence of a high proportion of light hydrocarbon fractions. It generally has a low wax content...
- Montney and the Horn River Basin, B.C. - Shale gas
- HBU heavy oil
- Dawson, Alberta - Oil sands bitumen
- Petrominerales (total proved reserves to 36.0 and 53.1 million barrels of oil, 2P (Proved + Probable) reserves are 2.7 times smaller than Petrobakken)
Petrominerales became independent of Petrobank on December 31, 2010
-
- Colombia (15 exploration blocks covering 2 million acres)
- Corcel and Guatiquia deep in the Llanos Basin - oil
- Llanos Basin plains region - oil
- Southern and eastern edges of the Llanos Basin heavy oil belt - heavy oil
- Neiva in cooperation with EcopetrolEcopetrolEcopetrol , formerly known as Empresa Colombiana de Petróleos S.A. is the largest and primary petroleum company in Colombia. Because of its size, Ecopetrol is a Fortune Global 500 company ranked 445, it belongs to the group of the 25 largest petroleum companies in the world, and it is one of the...
- Magdalena Valley Basin - Orito - largest oil discovery in the Putumayo basin
- Peru (5 exploration blocks with a gross acreage of 9.5 million, 5.4 million net)
- Ucayali Basin - last drill in 1988 was shut down because of security concerns.
- Titicaca Basin
- Colombia (15 exploration blocks covering 2 million acres)