The Bluesky Formation is one of our major opportunities in the Peace River area of northern Alberta. It is sandstone that was deposited in the Lower Cretaceous within a marginal marine environment. Major operators south of Manning include Shell, Baytex, Penn West, Koch and Murphy. The heavy oil and bitumen-filled sandstones are exploited by primary horizontal wells and secondary steam methods such as CSS.
In the Manning area, a smaller (although significant) Bluesky deposit was discovered by a combination of geological and seismic evaluation. Comparison of selected well logs from the south to the north Peace River Bluesky suggests petrophysical similarities, indicating good porosity and heavy oil presence.
Heavy oil trapping in the Bluesky Formation is different than in the Elkton and Debolt. Oil is trapped stratigraphically in porous sandstones with lateral and vertical seals (i.e., Wilrich shales) created by variations in lithology such as sandstones grading into sandy shales (see below). Seismic evaluation is particularly instrumental in determining thick channel deposits such as those discovered south of Manning. Such channel deposits are characteristically 1.5 to 3 kilometers wide, trending in a north-south direction. Other deposits include sandy bar bodies similar to those found as extensive, sandy beaches today.
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