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Duvernay Reserves and Resources Report

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Alberta Energy Regulator<br />

Production will likely increase if energy economics improve <strong>and</strong> stay favourable. In the meantime, it<br />

is expected that operators will continue to pilot different completion techniques to further optimize<br />

production <strong>and</strong> hold their l<strong>and</strong>s in anticipation of market turnaround. Future development will target the<br />

condensate-rich regions of the <strong>Duvernay</strong>.<br />

4 Resource Classification & Categorization<br />

Until now, the AER classified Alberta’s reserves based on the report of the Joint Task Force on Uniform<br />

<strong>Reserves</strong> Terminology from the Inter-Provincial Advisory Committee on Energy (IPACE) in 1978. IPACE<br />

focuses on traditional, or conventional, pools <strong>and</strong> does not fully account for the complexities of modern,<br />

or unconventional, plays.<br />

In 2015, the AER created a resource classification system to accommodate Alberta’s unique resource base.<br />

Adapted from the Canadian Oil & Gas Evaluation H<strong>and</strong>book (COGEH; SPEE, 2007) <strong>and</strong> <strong>Resources</strong><br />

Other Than <strong>Reserves</strong> (SPEE, 2015), the AER’s resource classification framework provides guidelines<br />

for differentiating resources according to trapping mechanism. These broad categories allow the AER to<br />

manage each resource independently with reserves assessment methods that are fit for purpose.<br />

Six resource categories are identified within the framework, as shown in Figure 9.<br />

Each resource category has a unique set of properties <strong>and</strong> requirements for characterizing the resource<br />

<strong>and</strong> evaluating reserves. Based on this framework, the <strong>Duvernay</strong> exists primarily within the AER’s shale<br />

resource category, <strong>and</strong> contains both shale gas <strong>and</strong> oil resource types, based on the specified trapping<br />

mechanism of adsorption on kerogen, in addition to being present in pores <strong>and</strong> fractures. The Innisfail<br />

assessment area may contain resource that also exists within the AER’s low permeability category (e.g.,<br />

tight carbonates).<br />

Figure 9. AER resource classification framework<br />

<strong>Duvernay</strong> <strong>Reserves</strong> <strong>and</strong> <strong>Resources</strong> <strong>Report</strong> (December 2016) 13

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