SHELL IN GREATER DEEP BASIN Leveraging more than 60 years of operations in Alberta, Shell brings a long history of operational excellence to west central Alberta where its Greater Deep Basin asset is located. Greater Deep Basin is comprised of two distinct fields: Deep Basin East and Fox Creek. Our Operations Deep Basin East is a core asset in Shell’s onshore portfolio. Located in west central Alberta, Deep Basin East is comprised of a gas field in the Edson and Hinton area that totals 135,000 net acres, and includes over 400 wells, three gas plants and six compressor stations. In 2015, Shell produced an average of 115 million cubic feet per day (MMcfe/d) of sweet natural gas and natural gas liquids from Deep Basin East. Fox Creek is a thriving liquids rich shale opportunity in Shell’s onshore portfolio. Since entering the area in 2012, Shell has acquired more than 225,000 net acres of high-quality acreage in the emerging Duvernay Kaybob play near Fox Creek, Alberta. Shell has drilled over 80 wells in the area and in 2015,produced an average of 38 MMcfe/d of sweet natural gas and natural gas liquids and 8,000 barrels of oil equivalent per day (BOE/d) of oil and condensate. A ground view of pump jacks at a producing well site near Fox Creek, Alberta. DEEP BASIN APPALACHIA FO HORNELL 86 86 43 CATRIEL FOX CREEK ATHBASCA RIVER 151 79 WHITECOURT DEEP BASIN EAST BRADFORD 32 TIOGA MERCER BROOKVILLE 80 LEWISBURG EDSON QUEN WILLIAMSPORT 16 PITTSBURGH ALTOONA 99 HINTON A Shell Environmental Coordinator takes a water sample near Edson, Alberta. Operating Principles in Action We believe that resource development can coincide with environmental protection when the principles of sustainable development are applied. Our five onshore operating principles provide a framework for protecting water, air, wildlife and members of the communities where we operate. Safety Shell employs consistently high standards in well drilling and completion design and all operations are conducted under life-saving rules and consequence management. Water To reduce our fresh water use in the Fox Creek area, Shell and the Town of Fox Creek formed an agreement that allows Shell to use the town’s treated wastewater in our operations—approximately 100 million gallons (400,000 cubic meters) per year. As part of this agreement, Shell funded an engineering and design study to upgrade the town’s raw water facilities and associated infrastructure. By using this wastewater and additional alternative sources, 60% of the water used in Shell’s operations in 2015 in the Asset Contact Information: URL: www.shell.ca/deepbasin Community Feedback Number: 1-855-723-3193 Fox Creek area came from alternative (non-fresh water) or wastewater sources. Land We work to reduce the overall footprint of our activities and we use previously disturbed areas where possible to minimize surface impact. In development planning, we engage early on with First Nations to understand traditional land use areas and to help avoid disturbing culturally-sensitive areas or areas used for traditional purposes such as fishing, hunting or trapping. Local Benefits In an effort to bring benefits to the Greater Deep Basin communities, we have a target to spend 40% of our contracts and procured services with local and/or aboriginal businesses in the area. Since beginning operations in the Greater Deep Basin areas, we have consistently this target on an annual basis. In addition, through our social investment initiatives, we invest in many worthwhile organizations in the Greater Deep Basin communities. SHALES UNCONVENTIONAL ENERGY
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