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Oil find mirrors first quarter in Canada Alberta Clipper Energy’s west-central Alberta well tested 1,750 bpd; two additional wells drilling, two more planned this year Gary Park For Petroleum News
Little-known junior Alberta Clipper Energy has trumpeted a “significant” new light oil discovery in west-central Alberta.
During a five-day testing period, the Sylvan Lake area well, which encountered 70 feet of net pay, flowed at rates of 1,750 barrels of oil equivalent per day.
Although the discovery is capable of delivering initial production rates of more than 1,000 boe per day when it comes on stream later this quarter, the company said the flow may be restricted by the Alberta Energy and Utilities Board.
Alberta Clipper is now drilling two additional wells in the Leduc pools, one of them targeting a separate pinnacle reef.
The second well is a development test into an existing Leduc pool that is believed to contain significant remaining reserves, the company said.
Two more exploratory wells will be spudded in the second half of 2006 as part of the company’s plans to participate in about 40 wells this year.
Drilling in the area, which costs about C$1.8 million per well and can be paid out within about two months, is gaining fresh life because of 3-D seismic programs, according to Alberta Clipper President Kel Johnston.
All well and good for Alberta Clipper, which holds a 20 percent working interest before payout of the discovery well and a 35 percent working interest after payout.
Basin discoveries reach 20-year high But, more importantly, the find mirrors an active first quarter showing as oil discoveries in the Western Canada Sedimentary Basin reach a 20-year high, indicating the aging basin is far from being on its last legs.
The industry has logged 244 oil finds, compared with 191 in the first three months of 2005 and the most for the period since 1986.
Oil development wells were also on a run, totaling 1,116, the most in eight years.
Natural gas drillers posted two records: 1,075 discoveries, beating the same period of last year by 85, and 3,327 development wells, 656 better than last year.
Total well completions were 6,178 for the January-March period, easily eclipsing last year’s 5,092.
Despite the weakening of gas prices, the industry is also gearing up for a continued strong showing, after obtaining record well permits from regulators — 2,421 for exploration wells, up 28 percent, and 5,110 development approvals, up 12 percent.
Total permits for the quarter were 9,425, compared with 6,913 for the same period last year and the previous high of 7,411 in 2004.
Conventional oil and gas licenses were 7,531, while test and observation holes accounted for 1,894 in the oil sands and bitumen region of northeastern Alberta.
Leading areas were all in Alberta — 1,646 permits for the southeast, 1,088 in the central region and 1,055 in the Foothills of the Canadian Rockies.
Of the 2,421 exploratory approvals, 2,202 were in Alberta and Saskatchewan, dominated by conventional gas targets.
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