Posts by Cara Haberstock

April 13, 2015 by

IWCP Non-compliant Wells Will Cost More Than $320 Million

Editor’s Note: While VISAGE rebranded to VERDAZO in April 2016, we haven’t changed the VISAGE name in our previous blog posts. We’re proud of our decade of work as VISAGE and that lives on within these blogs. Enjoy. The IWCP (Inactive Well Compliance Program) came into effect on April 1st with little fanfare. This is not surprising given the spending cuts companies have been announcing in the current price environment. The anticipated cost of addressing the 32,788 IWCP non-compliant wells over the next five years will be in excess of $320 million. This is an extremely important liability consideration for anyone doing acquisitions in the near future. As of April 1st there are ten licensees with more than 500 non-compliant inactive wells, of those 4 have more than 1000 non-compliant wells. The Provost, Pembina and Cold Lake fields all have more than 1000 non-compliant wells (shown in the chart below), and collectively represent 14% of all of Alberta’s non-compliant wells. The remainder of this blog provides a map of all of Alberta’s non-compliant wells and details about risk levels. About the IWCP The Alberta Energy Regulator (AER) introduced the IWCP to address the growing inventory of inactive wells. The objective of this...

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