ConocoPhillips Canada

Assets

Elmworth inside facility

ConocoPhillips is one of the top natural gas producers in Canada. In 2016, our total net production averaged 117 MBOED. Our operations are located primarily in Alberta and British Columbia. We have an ownership position in approximately 30 natural gas processing facilities in the region.

In the fourth quarter of 2016, we finalized a swap of non-strategic producing assets for a larger
land position in the Blueberry-Montney, adding approximately 30,000 net acres. As of Dec. 31, 2016, we held leasehold rights of 3.1 million net acres.

Deep Basin

We are one of the largest producers and operators in the Deep Basin, which stretches across northwestern Alberta into northeastern British Columbia. As of Dec. 31, 2016, we held leasehold rights of 1.3 million net acres in this area.

The Deep Basin provides production potential from 14 prospective geological formations. It is a mature area that was historically developed with conventional vertical well technology. We have shifted to horizontal drilling in our development programs to unlock the vast resource potential in the tight sand plays.

We drilled eight horizontal wells in 2016. The primary processing facility in the Deep Basin is the ConocoPhillips-operated Elmworth Plant. We hold significant working interests in five other
major natural gas processing facilities in the region. In 2016, net production in the Deep Basin averaged 46 MBOED.

Kaybob-Edson

As of Dec. 31, 2016 we held leasehold rights of 0.7 million net acres in the Kaybob-Edson Area, which is situated southeast of the Deep Basin in west-central Alberta. Target development is in the Triassic and Lower Cretaceous formations where the industry has de-risked several highly-prolific zones in offsetting acreage. We drilled 15 horizontal wells in 2016.

In the Kaybob-Edson Area, natural gas processing is mostly controlled by midstream operators and other oil and gas companies. We secured favorable longerterm contracts to manage both existing base and new development volumes. Additionally, we operate natural gas processing facilities in the area including Peco and Wolf. Net production in Kaybob-Edson averaged 37 MBOED in 2016.

ClearwaterThe Clearwater Area is also situated in west-central Alberta, south of Kaybob-Edson. As of Dec. 31, 2016, the company held leasehold rights of 0.8 million net acres. Our assets in the Clearwater Area are characterized by multi-horizon reservoirs at medium depths ranging from 6,500 feet to 10,000 feet, all with high-liquids content. This is a mature area that provides us several low-risk, horizontal drilling development programs. We operate natural gas processing facilities in the area including Sand Creek and Alder. Average net production was 34 MBOED in 2016.

 
ConocoPhillips Canada maintains a management system that integrates its operational activities with its management of financial resources to meet its pipeline system abandonment obligations. For information related to ConocoPhillips Canada’ National Energy Board-regulated pipelines, contact the Environmental Liabilities and Asset Retirement Obligation group at (403) 233-4000.