The Montney Shale is deposited in a broad marine shale basin that straddles the border of the British Columbia (northeast) and Alberta (southwest) with depths of 3,000-6,650 ft. It was developed as a resource shale basin in the 1990's through to the mid-2000's with vertical producers. It covers some 10,000 sq mi

From 2008 onwards, the technologies of horizontal wells and multi-staged fracs (6-12 stages) were introduced primarily in the Swan Lake region by Ecana, now followed by Exxon in the Horn River Basin to the north.

The shale itself is complex with 3-4 distinct geological zones providing potential producing intervals. The horizontal well developments found initial rates from 7-11MMcfpd, with expected recoveries of 3-4 Bcf/well.

Other prospective resource shales (Ootla and Second White Specs formations) in the Western Sedimentary Basin are also being drilled and tested. AEL has participated through its affiliates/investco's in all three shale plays by entering early based on detailled rock properties and petrophysical analysis.

Western Canadian Sedimentary Basin
Alexander Energy Limited
Source, EOG, 2008