The Deep Basin Advantage
The Deep Basin sandstone has superior permeability than Montney siltstone and Duvernay shale. As a result, far less water and sand is required during completions to liberate natural gas molecules reducing capital costs and allowing for a smaller footprint to drill and complete the wells. The lack of mobile formation water further reduces water handling costs in the field. The only water produced is that which was pumped into the reservoir during completions.
With more than a dozen stacked reservoirs to exploit, Peyto can re-use a single collection of surface infrastructure including roads, pipelines, wellsites, and processing facilities to develop the various layers over time. This allows for concentrated development and production operations and the ability to employ smaller, nimble, fit-for purpose rigs delivering lower costs and shorter cycle times.
Peyto’s land base is downstream of the Montney congestion giving the Company better access to the NGTL and Alliance pipeline systems and resulting in cheaper transportation costs.
