Waterflood Project Application

A waterflood project improves oil recovery by injecting water into a hydrocarbon bearing formation. The water increases pressure in the reservoir and displaces oil towards a production well.

If a spacing modification (no injection proposed) is being applied for within a designated waterflood project use the reduced spacing application guidelines for information to attach to the waterflood application.

Good Production Practice (GPP) may be applied for as part of a new waterflood project application only. Attach justification as is outlined within Section 3 of this webpage to the new Waterflood Project Application. To apply for GPP on existing projects, use the GPP application process and submission.

Waterflood projects and well spacing modifications approved by the Ministry of Energy and Resources are available on the Minister's Order Bulletin Board. All archived Minister's Orders since 2005 can also be found on the bulletin board.

Application for a waterflood project can be made when:

• The project is expected to provide incremental recovery.
• Makeup water is used to replace produced oil in the stratigraphic unit within the project area (makeup water is used to maintain voidage replacement in the area).
• The proposed injection water, injection pressure, and well integrity aren't detrimental to the stratigraphic unit or other permeable zones.
• The applicant is the operator of the project.
• The applicant has the right to operate/modify the well(s).

The applicant must have an Integrated Resource Information System (IRIS) account and the appropriate permissions assigned by their IRIS Security Administrator to submit a waterflood project application.

To apply for a waterflood project:

1. Complete the Waterflood Project New/Expansion Application or Waterflood Project Modification Form and include all required attachments. See the Form Instructions tab of the application. Check the current area assigned to the project in IRIS:
   • If the proposed application area falls within the assigned project area the Waterflood Project Modification Application Form should be used.
   • If proposed application area falls outside the assigned project area or application is for a new project the Waterflood Project New/ Expansion Application Form
   must be used.
   • If a spacing modification is being applied for within an existing waterflood use and follow the spacing modification application process in addition to the waterflood project application form. Include a discussion of the impact to VRR and recoveries with the additional production wells being added.
   • If a Good Production Practice is being applied for within the waterflood area in a new project include the following information:
     1. A discussion on produced water and gas usage plan,
     2. Current Allowable Rate of Production (ARP) for well completions in the project area,
     3. Analogous examples of GPP performance in a Waterflood project,
     4. Confirmation Public Notice was also conducted for GPP notification area if required.
     Refer to Apply for an Allowable Rate of Production for Oil Wells for guidance.
2. Complete the Public Notice Process if required.
3. Complete and sign the Injection into Freehold Minerals declaration of agreements in place letter, if required.
4. Complete the Reclassification/Recompletion (part of a reservoir) Application Form with all the necessary attachments (as one document), if required. For more information, see Guideline PNG024: Reclassification and Recompletion.
5. Confirm that all the information is complete and accurate, and forms are dated and signed. Ensure all required attachments are included:
   • Applicable Waterflood Project Application Form and attachments.
   • Completed Public Notice Process package, documented objections and required consents as a separate document, if applicable.
   • Reclassification/Recompletion (part of a reservoir) Application Form with all the necessary attachments.
6. Log in to IRIS and complete the appropriate application process for authorization and attach the required documents.

Note: Documents related to third-party engineering reports and seismic data can be attached as confidential. The application must have enough non-confidential information within it to adequately justify/explain the application. Confidential attachments are kept confidential and are only viewable to the Business Associate that applies and the ministry.

Log in to IRIS

Enhanced Recovery - Waterflood Authorization

Licence Functionality

New wells authorized through the Enhanced Recovery (ER) authorization will have a draft well licence submissions created.

The ER authorization cannot be used on a reference for a new licence application created by an applicant; licence submissions are generated from the authorization. Changes to the following fields from the ER authorization will cause the licence to go non-routine:

• Surface Location
• Drilling Trajectory
• Bottom Hole Location
• Well Completion Type
• Pool, only if the stratigraphy is different
• Additional completions are added to the Well Licence application

• Denied well licences will repopulate a new well licence submission from the authorization.
• Cloning or withdrawing a licence generated through the Enhanced Recovery authorization is not permitted.
• To withdraw a well licence or regenerate a cancelled well licence created from an Enhanced Recovery authorization a request should be made through ER Service Desk.

Authorization Amendments

If amendments are required to existing Enhanced Recovery authorizations a request should be sent to ER Service Desk with the following details:

• Enhanced Recovery Authorization number
• Requested changes.

Amendments to the authorization would be considered if there is no change in the number of wells approved, no changes outside of approved area and if public notice was required the changes do not impact that notice validity. For example, replacing a cancelled licence, switching production/injection wells around, revising location details to avoid Non-Routine licence submissions would all be reasonable and considered authorization amendments.

A well may not require an authorization (i.e. does not require approval for a spacing change or is not for injection); those wells can be licensed and linked to a project without an authorization being required.

Note: Legacy authorizations that have been issued for Waterflood remain valid and usable.

Operator Transfers

If a project is transferred to a new operator all existing ER Waterflood Authorizations associated to that project issued remain valid. Ensure that the project operator is updated as well as transferring the well licences associated within the project. This will ensure reporting activity on completion changes remains available.

To use the existing draft well licence submissions generated by the ER Authorization contact the service desk and provide confirmation that a transfer has occurred as well as the submission numbers associated to the project that has transferred to a new operator and request the draft licence submissions be transferred.

Note: The application and authorization will remain under the BAID of the applicant, this is to maintain policy on applications being a point-in-time reference and to ensure confidential documentation submitted with the original application remains confidential.

Project Reporting and Obligations

An approved project may be subject to obligations that must be satisfied by the operator. Project obligations are triggered automatically or added anytime during the life-cycle of a project.

Project Commencement

An obligation for project commencement will be created upon creation of a project with the project number assigned in IRIS. Once criteria are met as outlined for the waterflood a company is to report commencement of the flood within 14 days.

Project Progress Report

Projects may be subject to reports dependent upon performance. If requested, an obligation will be added to the project detailing the requested information. The operator will be notified via IRIS, including the due date. Reports are held confidential by the ministry.

No annual progress report will be required unless requested.

Project Termination

An obligation for project termination is assigned on all projects. Once an operator has decided to terminate a project, this obligation can be reported against once all pressure maintenance water injection has ceased. If injection wells are reclassified to other injection types a waterflood project may be terminated. A termination report should include at minimum:

• A project evaluation with reason for termination;
• A report on all reduced spaced locations associated to the waterflood that are still active;
• Confirmation that pressure maintenance water injection has ended and is not planned in future; and
• Future plans with injection wells.

Waterflood Development Program (WDP)

The Waterflood Development Program (WDP) offers repayable royalty/freehold production tax deferral for eligible wells that have been converted to injection wells or newly drilled injection wells for the purpose of waterflooding an oil reservoir.

Application Forms

• Waterflood Project Application (New)
• Waterflood Project Application (Modification)
• Recompletion/Recompletion Application Form
• Spacing Modification Form (Minor)
• Spacing Modification Form (Major)

Refer to the Directives and Guidelines below for details

• Directive PNG006: Horizontal Oil Well Requirements
• Directive PNG008: Disposal and Injection Well Requirements
• Directive PNG009: Public Notice Requirements
• Directive PNG012: Allowable Rate of Production - Oil Wells
• Guideline PNG021: Determining Drainage Units and Target Areas
• Guideline PNG024: Reclassification and Recompletion

Other Links

• Enhanced Recovery Application Training Module
• Project Obligation Training Module
• Minister's Order Bulletin Board
• Public Notice Process for Oil and Gas Activities
• Well Spacing Modification Application