Anderson has one core area, Greater Willesden Green, centered approximately 150 km northwest of Calgary, Alberta. This area includes not only the defined Willesden Green field, but also portions of the Buck Lake and Pembina West fields.
The majority of Anderson’s oil production in the Greater Willesden Green area is from horizontal multi-staged fractured wells in the Cardium formation. Average true vertical depth of the wells is 2,000 meters. All of Anderson’s oil production is light, sweet crude. Natural gas in solution in the oil plus natural gas liquids is also captured from these wells. Shallow dry gas is also produced in the area from reservoirs at less than 1,000 meters in depth.
Anderson has a strong infrastructure position in the Greater Willesden Green area. Working interests in major Cardium oil batteries in this core area includes a 100% interest in 01-02-44-08 W5 and 45% in 01-27-40-06 W5. Varying working interests up to 100% are held in numerous one and two well oil batteries. A key 100% working interest is held in a shallow cut gas plant at 05-14-39-05 W5 as well as in fit for purpose gas batteries at 05-26-43-05 W5 and 08-20-41-04 W5. Other gas plants with some Anderson ownership include: 14-32-37-03 W5, 11-35-37-09 W5, 01-21-38-02 W5, and 06-16-38-04 W5.
The Greater Willesden Green area will be the growth engine for Anderson in 2014. The drilling focus will be solely light oil based. Ultimately, the objective is to get corporate liquids production to the 50% level. Initially, the Cardium formation will be pursued and development may eventually extend to other light oil reservoirs. There are no outstanding farm-in drilling commitments in the Company. Anderson plans to use cash flow, available cash and credit facilities to continue to develop its extensive and high quality light oil drilling inventory.