Nova Scotia gas field poised for expansion

The dwindling reserves at Nova Scotia’s offshore Sable natural gas project may be close to getting a lift from inclusion of the Chebucto field, which has proved plus probable reserves of about 160 billion cubic feet.

Sparton Resources, which has a 6 percent unitized interest in Chebucto, said Sable operator ExxonMobil Canada has served notice it is considering development of the field, which was discovered in 1984.

In addition to ExxonMobil, Royal Dutch Shell is a majority partner.

Chebucto is close to the existing Sable facilities, which supply gas to Atlantic Canada and the northeastern United States.

Although development plans are in the early stages, Sparton said the first gas could be produced in 2013, once the resource size and production expectations are confirmed along with estimated capital costs.

Sparton said earlier this year that Nova Scotia government leasing activity in the immediate area and the Sable Island region have shown a “renewed interest by both the government and industry in new exploration.”

Two large exploration licenses were issued west and south of Chebucto last year for combined bids of C$120 million. The Canada-Nova Scotia Offshore Petroleum Board has rated the Chebucto field as the sixth largest in recoverable gas reserves of 24 known discovery areas in the region.

—Gary Park