The Mackenzie Delta has notched its first gas discovery in more than two decades in a breakthrough that has been eagerly awaited to reinforce the viability of a Mackenzie Valley pipeline.
A partnership of Chevron Canada Resources, BP Canada Energy and Burlington Resources Canada announced April 24 that it found gas in “commercial quantities” at the North Langley K-30 well spudded last month.
The well tested at a restricted flow rate of 18 million cubic feet per day, although reserves and production potential are being kept under wraps for now, Lynn Lehr, manager of communications and external affairs with Chevron Canada, told Petroleum News.
But Chevron Canada president Alex Archila said in a new release that the first Tertiary discovery from 1999 and 2000 exploration lease sales yielded “exactly what we had projected we would find.” He said the find reaffirms “our confidence in the exploration potential and commercial viability” of the Delta region.
The partners will now seek permits for additional exploratory well locations “as possible candidates” for next winter’s drilling season, Archila said.
Burlington Resources Canada president Mark Ellis rates K-30 as “solid progress in advancing our position in this highly prospective area.”
John Pritchett, vice president, exploration for BP Canada, said “the discovery is a positive step and we look forward to seeing the results of our future exploration activities in the area.”
Chevron, as operator, and BP shared the costs of the well estimated at C$8 million under a farm-in deal with Burlington.
The well was drilled by Akita Equtak Drilling, a joint venture of Akita Drilling and the Inuvialuit Development Corp.