McCully Field, New Brunswick
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The McCully Field is located approximately 10 km northeast of Sussex, New Brunswick in the farming community of Penobsquis.
Thirty-nine wells, all of which have encountered gas, have been drilled in the McCully Field to access natural gas within tight sandstone rocks of Carboniferous age (approximately 350 million years old). Headwater holds an average working interest of 75% in 81,022 gross acres in the McCully Field with Nutrien Ltd. (previously Potash Corporation of Saskatchewan) holding the remaining 25%. Updated reserves information is contained in the Corporation’s most recent Annual Information Form. All of Headwater’s reserves are booked at McCully.
Dry natural gas (1 barrel of condensate per million cubic feet of produced natural gas) is produced from the McCully Field, which provides Headwater with a stable cash flow to fund growth opportunities. The McCully Field is connected to the northeast US gas market with premium natural gas prices during the winter season. Headwater expects to achieve much higher netbacks than most other operators in North America.
Headwater owns and operates a natural gas processing plant, with a processing capacity of 35 mmscfpd, and a 50 km transmission line connected to the Maritimes and Northeast pipeline.