Oil & Natural Gas
Oil & Gas
Historically, the largest segment of Barnwell Industries, Inc. (“BII”) has been oil and natural gas exploration. Oil and gas activities in Canada are handled exclusively by BII’s subsidiaries Barnwell of Canada, Limited (“BOCL”) and Octavian Oil Limited (“OOL”) based in Calgary, Alberta, Canada. BOCL has conducted operations in Canada for over 50 years.
The Company’s core Canadian asset is located at Twining, Alberta, about 70 miles north of Calgary and encompasses 10,000 acres. The field is low decline, primarily oil-bearing, and currently produces approximately 700 barrels of oil equivalent (“BOE”) per day gross production from a mixture of vertical and horizontal wells. The Twining area has been producing since 1962, with an estimated 935 mmbbl of oil in place. The Company has recently improved its position at Twining by optimizing existing wells and facilities, acquiring new lands, and undertaking new shale-style horizontal drilling. Multiple highly economic investment opportunities exist in both horizontal new-drills and capital workovers.
As a nimble and proactive independent, the Company targets highly profitable development and acquisition niches in both the U.S. and in Canada. Most recently, the company has partnered with leading private operators in Oklahoma to drill horizontal shale wells targeting the Merge play. These wells are projected to pay out <2 years and provide strong cashflows with a minimum of overhead.