Working closely with our stakeholder groups and focusing on our commitment to responsible development, we have grown to become a major Canadian energy producer in a relatively short period of time. A snapshot of our history is provided below, with full details available in our news releases and annual information forms.
Seven Generations Energy Ltd. ("7G") was formed in May 2008 based on a concept and name that conveyed its commitment to responsible development and ongoing consideration of how its decisions will affect stakeholders seven generations into the future. 7G operates in accordance with and is committed to its Guiding Principle, a philosophical belief that only those companies that best serve their stakeholders will be successful in the long term.
Funded by management and private investors, 7G acquired its first lands in three locations, the Kakwa region of northwest Alberta, North Dakota’s Bakken tight oil play and an emerging shale gas play at Horn River, in northeast British Columbia.
At the time there was considerable industry debate on the degree of porosity (the pore space in dense, tight rock where petroleum can reside) required to enable commercial rates of production. Based on a cursory review of petrophysical well logs and records, the porosity in the Kakwa River region appeared to be too low for economic recovery hydrocarbons. The cause of the deceptive porosity readings was largely not the porosity itself. Rather it was the density of the dolomite rich Montney rock in the region.
7G believed that the ability of natural gas to flow within the Montney had more to do with the size of the pore throats than with the porosity. The company’s geologists and engineers pushed past the conventional oil and gas evaluation practice of arbitrarily declaring a porosity cut off below a certain threshold and discounted conventional thinking based on the age of shale and tight unconventional reservoirs. Vertical test wells drilled in the winter of 2008-09 yielded encouraging production of liquids-rich natural gas from several zones, including the Montney formation.
During the period from 2008 to 2010, 7G tested and delineated various tight, gas-bearing formations – the Cadotte, Gething, Cadomin, Charlie Lake, Falher and Upper and Middle Montney – and quietly added to its Kakwa land holdings. Early drilling results suggested that the Upper and Middle Montney could support a large-scale, liquids-rich natural gas project, and that this formation was potentially of high enough quality to enable wells that could compete in the over-supplied North American natural gas market.
7G monitored offsetting activity in the regions surrounding its Horn River and North Dakota Bakken holdings, and shot a seismic program at Horn River to help define the shale deposit edge. However, by the summer of 2010 it was clear that Kakwa offered the best economics as measured by the commodity price required to earn an internal rate of return sufficient to attract financing and support commercial development. As a result, Seven Generations sold its Horn River lands in 2010 and North Dakota Bakken assets in 2011 while redeploying the proceeds, including a significant gain on its initial investment, to acquire more land and expand drilling within the Upper and Middle Montney formations. The Kakwa River Project was born.
In 2017, 7G’s founding CEO Pat Carlson retired and Marty Proctor was named President & CEO. Throughout its history, Seven Generations benefited from the support of key business partners and capital providers that provided 7G with capital beyond its internally generated cash flow to support its infrastructure network growth and build out of the Kakwa River Project.
The company has evolved its primary business focus, shifting away from top line production growth towards a business strategy focused on maximizing its free cash flow generating capacity – enhancing the company’s sustainability and fueling the return of capital to its shareholders.
7G continues to uphold the values outlined in its Guiding Principle and operate under its responsible energy development and stakeholder service commitments.
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