Development of Low-Productivity Gas Reserves, Southeastern Alberta
Authors: Kloepfer C.V. , Last G.J. 
Published: March 2010

Abstract
The drilling and completion practices utilized in the development of the Milk River and Medicine Hat zones in southeastern Alberta reflect the limited productivity and economics of the resulting gas production. The opera ting costs applicable to the surface handling of this gas are kept to a minimum through efficient utilization of wells, flowline, roads and surface equipment.
Ultimate production for these zones is a function of individual well performance. Typical spacing to provide reasonable project lives are 320 acres for the Milk River development and 640 acres for the Medicine Hat pools. Initial productivity of the wells varies from 220 Mcf/D for a Milk River well to 500 Mcf/D for a Medicine Hat well. Production rate at abandonment could be as low as 20 Mcf/D. Typical recoveries for the Milk River and Medicine Hat zones are 2 Bcf/section.
The profitability of a typical southeastern Alberta gas producing operation is critically related to capital and operating costs and particularly dependent on field operating practice.

INTRODUCTION
FOR THE PAST FEW YEARS, a significant portion of Alberta's natural gas drilling and development activity has been centralized in the southeastern portion of Alberta (Fig, 1). During 1971, approximately 25% of Alberta's additions to gas reserves were credited to this area. The same proportion is expected to apply to the reserve additions for 1972. As of August/72, the initial marketable gas forecast for the Milk River and Medicine Hat zones amounted to 2.8 Tcf.
The recent study completed for the Alberta Government(1) indicates a gas reserve potential of 4 Tcf for the Suffield Block (currently a military reserve); once proven and developed, this could increase provincial gas reserves by 7%. The general industry activity forecast for southeastern Alberta for the next three years in currently undeveloped areas of reservoir potential could add an additional 4–6 Tcf of gas reserves to the provincial total.
Production from these shallow low-pressure reservoirs dates back to the very beginning of Alberta's gas industry. Natural gas was first discovered in the Province northwest of the town of Suffield by a well drilled in 1883 to the Milk River Formation, The much publicized Medicine Hat Field was discovered in 1904.
The performance of wells completed in the Milk River and Medicine Hat zones is typical of low-permeability reservoirs. Individual well rates are low. Recoveries are entirely dependent on the well productivity and the associated economics of production and compression. Because of these limitations, early production from the Milk River and Medicine Hat zones was primarily confined to local users. The low-cost energy source was quite successful, however, in attracting industry to the Medicine Hat area and was the beginning of the natural-gas-allied industry of the Province. As a matter of interest, in 1907, on a trip through the area and exposed to the many individual uses of natural gas, Rudyard Kipling exclaimed, "You people in this district have all hell for a basement".