According to Drilling Contractor, Yangarra Resources has identified 40 net Tier 1 drilling locations in the Belly River formation at its Chambers area operations in Alberta, with plans to drill additional wells in the near term.
Market Impact
The Canadian producer has been developing the Belly River play over the past two years, leveraging existing Cardium infrastructure to support the new formation development. Based on results from 10 producing wells, Yangarra plans to further delineate the play over the next six to 12 months, potentially adding about 60 additional net drilling locations.
Two Belly River wells are scheduled for fracture stimulation this week, with two additional wells planned for drilling in the near term. The company has refined its approach through operational experience, transitioning from slickwater to gelled fracture stimulation starting with the seventh well. Recent pump system upgrades on the tenth well resulted in production exceeding 500 boe/d with approximately 68% liquids after a two-week cleanup period.
What It Means for Subcontractors
- Drilling contractors can expect sustained activity over 12-18 months as Yangarra delineates up to 100 total drilling locations across the Chambers land base
- Completion services will see demand for gelled fracture stimulation work, as the company moved away from slickwater techniques based on reservoir performance
- Pump service companies have opportunities for bottom hole pump installations and upgrades, particularly given Yangarra’s shift to larger pump systems that boosted production
- Trucking and logistics providers can benefit from the extended development timeline and the company’s use of existing surface infrastructure
- Wireline and perforating services will support the completion program as two wells undergo fracturing this week with more scheduled
The play’s overlay on existing Cardium infrastructure reduces surface preparation costs while creating steady workflow for established service providers in the area.
