Chinchaga, Alberta

Chinchaga, Alberta is known for some of North America's most prolific gas fields. Most prominent are the 450 BCF Cranberry field, the 430 BCF Hamburg field and more recently the 450 BCF Ladyfern field. These fields all produce from the upper Devonian Slave point formation where leached and fractured limestone provieds a highly permeable and porous reservoir. The Slave point formation is so permeable that in some instances a single well has been capable of draining an area of severl square miles. Slave point wells' productivity is also enhanced by their typical high porosity. For example at Ladyfern, several phenomenal gas wells each produced at more than 50 million cubic feet of gas per day during their first year of production.

The Slave point formation is the remains of a prehistoric feef formed approximately 360 million to 400 million years ago. The most prolific areas have undergone various processes including hydrothermal dolomitization, fracturing and brecciation. The entire Slave point formation in the north-central Alberta and British Columbia is estimated to contain 7 TCF of gas in place.

The high carbonate content of the off-bank strata at Ladyfern previously made seismic imaging of the Slave point formation in similar areas virtually impossible prior to the 1990s. Since then, advances in 3D seismic and reprocessing of data and a new understanding of the area's characteristics have opened a window of opportunity in the less densely drilled areas to the south of three previously mentioned gas fields.

Chinchaga is one of these very high quality prospects. It is a high impact prospect generated from extensive geologic studies including sample work of virtually all offsetting wells, seismic modeling, reprocessing and reinterpretation, and a large 3D seismic survey. The Chinchaga prospect is a farm-in with Suncor Energy Inc. where Eden has earned interests ranging from 10% to 55.56% in over 23,000 acres by participating in two exploration wells. While these wells were not successful, they have allowed Eden and its partner to better calibrate the 3D seismic which will lower the risk in future drilling. The Chinchaga area has been the site of high land sale interest and Eden Energy is monitoring industry activity in the area before making a decision on further drilling.