After the advent of horizontal drilling, the oil and gas activity in the Kaybob field in the Fox Creek area has exploded. With an increase in drilling activity in the Kaybob, came a dramatic need for water management services. Wait times at local water disposal facilities were in excess of eight hours; increased wait times result in an increase in water management costs for oil and gas producers. Aware of the problem, Catapult met with local Kaybob producers in an effort to help lower their water management OPEX.
One such company who faced increased wait times and a dramatic increase in water management OPEX was Trilogy Energy (now Paramount Resources). After meeting with Trilogy to understand their specific water challenges, Catapult identified a solution that would be of direct benefit to them. Trilogy provided Catapult with a suspended well bore that would later be converted to a disposal well. In return, Catapult included a dedicated riser and preferential partner pricing for Trilogy once Catapult’s Fox Creek 7-7 water management facility became operational.
By listening to Trilogy’s water management challenges, Catapult created a partnership that not only reduced Trilogy’s wait times and water management OPEX, but also provided the regional market with an increase in water disposal capacity. Catapult’s creation of a mutually beneficial partnership model is transforming the water management industry and has set the bar for the level of client service that a water management company should provide.
Highlights:
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Priority access for Paramount (Trilogy)
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Dedicated riser that reduced wait-times
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Future growth complemented long-term strategy in the area
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Expanded Fox complex to meet increased demand
“Catapult Water Midstream has created a realistic approach to partnerships in the disposal sector. Through our partnership agreement, [Paramount] is able to drive down op-costs and generate greater returns for our shareholders.” – John Williams, EVP Kaybob, Paramount Resources
