Apache bullish on Alberta, B.C. and NWT, says Vice President Rob Spitzer

Gary Park, Petroleum News Calgary correspondent

Northern Alberta and British Columbia are “hugely under explored,” while the Northwest Territories has “large potential,” said Apache Canada Exploration Vice President Rob Spitzer.

But turning these regions, especially those close to existing infrastructure, into reserves needs resolve from E&P companies to spend on exploration, he told a Calgary conference June 26.

That need is reflected in the industry focus over the past 20 years, with exploration and production accounting for about 30 percent of total spending in 2001, down from 54 percent in 1984, Spitzer said.

He said the overall well density in the Western Canada Sedimentary Basin is just one well for every 2,500 acres, deeper Devonian formations average only one well per 25,000 acres and the Mackenzie Delta rises to one well per 250,000 acres.

In the Northwest Territories, where drilling has been restricted by gas prices, the absence of infrastructure and a shortage of land postings, Spitzer said Apache is committed to exploring in hopes that a pipeline will be built from the Mackenzie Delta.

Apache teamed up with Paramount Resources last winter to engage in “true frontier” exploration in the Colville Hills area of the Northwest Territories.

Paramount reported “extremely encouraging” results from the area, which sits on the Arctic Circle about 150 miles northeast of Norman Wells, and where the joint venture partners have acquired 650,000 acres.

The Nogha C-49 well, drilled to about 4,600 feet, encountered multiple zones of gas-bearing sandstone reservoir, while Nogha M-17 was drilled from C-19 and reached its total depth of about 4,900 feet. Both were cased and completed as successful gas wells.

Paramount and Apache are also evaluating two-dimensional trade seismic and carrying out new 100-mile 2D seismic on recently acquired exploration licenses to identify potential drilling locations.

Plans for next drilling season include re-entering the Nogha wells to evaluate untested zones and drilling additional wells to further delineate the discovery.