ConocoPhillips became a top-three natural gas producer in Canada with the 2006 acquisition of Burlington Resources. The acquisition more than doubled the company’s reserves, wells and production in the region. Company operations are primarily located in Alberta and British Columbia, with some production in Saskatchewan. ConocoPhillips also owns a number of gas processing plants in the region.

The focus areas include Deep Basin, Rimbey/O'Chiese, Central, Southern Plains, Foothills, Northern Plains and Kaybob/Edson.

Deep Basin
ConocoPhillips is the largest operator and producer in the Deep Basin, located west of Grande Prairie in northwestern Alberta and northeastern British Columbia. The Deep Basin provides productive potential from a total of 14 prospective geological formations. As of December 31, 2006, the company held mineral rights in 2.2 million gross acres (1.5 million net acres). The company conducts an active drilling program in the area, which in 2007 will consist of approximately 85 wells, compared to recent years in which more than 200 wells were drilled annually. ConocoPhillips is the operator of about 90 percent of its activity in the area. Average production for 2006 was 219 MMCFD of gas, 9 MBD of NGL and 2 MBD of oil. The company holds significant working interests in seven major gas processing facilities in this area. The primary gas processing facility is the ConocoPhillips-operated Elmworth gas plant near Grande Prairie. Gas processing capacity at Elmworth was recently expanded from 300 MMCFD to 450 MMCFD. ConocoPhillips holds an 87 percent interest in the Elmworth facility.

Rimbey/O’Chiese
ConocoPhillips’ assets in the Rimbey and O’Chiese operating areas in central Alberta are characterized by multi-horizon reservoirs at medium depths ranging from 6,500 to 10,000 feet. An active capital program is underway, targeting moderate-risk development and extension opportunities. Net production for 2006 averaged 191 MMCFD of natural gas, 8 MBD of NGL and 6 MBD of oil.

Southern Plains
Comprising primarily eastern and southern Alberta, Southern Plains is principally made up of shallow- and medium-depth natural gas assets, including all of the Horseshoe Canyon coalbed methane assets. With virtually year-round access and less than 7,500-foot-depth targets, this area offers lower-cost, low-risk development opportunities. The 2007 capital program includes drilling 250 to 300 wells. ConocoPhillips’ net production was 207 MMCFD of natural gas, 1 MBD of NGL and 6 MBD of oil during 2006.

Kaybob/Edson
The Kaybob/Edson area is located in west-central Alberta and covers nearly eight million acres of land. ConocoPhillips is one of the largest operators in the Kaybob/Edson area, holding 1.2 million net acres of land and producing 153 MMCFD of gas, 4 MBD of NGL and 2 MBD of oil in 2006. Activity is split between downspacing and development drilling in the Rock Creek, Cadomin and Bluesky/Gething formations, and trend extension and concentric exploration in the Falher, Cadotte and other Lower Mannville units. Significant recompletion potential exists in secondary targets such as the Cardium, Viking and Belly River zones. In 2006, the company drilled just over 200 wells, with 90 wells planned for 2007.

Northern Plains
In the Northern Plains area, located in northwestern Alberta and northeastern British Columbia, ConocoPhillips holds approximately 1.2 million net acres of development and exploration assets. The main producing horizons consist of shallow gas in the Bluesky/Gething and Montney in the Ring Border area. The company is pursuing exploration opportunities in the Debolt formation. Production from the Northern Plains area in 2006 was 79 MMCFD of natural gas, 2 MBD of NGL and 1 MBD of oil. In 2007, the company plans to drill 39 wells in this area.

Foothills
ConocoPhillips has a core position of 617,000 net acres in the Canadian foothills, which extends in a 15-to-20-mile-wide band along a 250-mile expanse of the Rocky Mountains from the Central foothills area, northwest of Calgary, Alberta, into northeast British Columbia. The program is focused on two main components: deep sour gas production in the inner foothills and sweet gas production from the outer foothills. Typical development and exploration programs consist of participation in eight to 10 sour wells and 20 to 25 sweet wells annually. Net natural gas production averaged 82 MMCFD in 2006.