Pioneer notches new gas play in Alberta
Pioneer Natural Resources has posted success in northern Alberta, reporting the discovery of a new shallow gas field and the start of production from three wells at 18 million cubic feet per day.
The company has a 100 percent working interest and a 75 percent net revenue interest in the new field in the Atikamik area, assuming a 25 percent sliding-scale government royalty.
Pioneer said the field is located within a trend of aged gas fields that have so far produced 2.2 trillion cubic feet. The company hopes to produce a similar volume.
The initial discovery well was drilled in early 2006 in an area confined to winter field operations.
Horizontal drilling contributing to ratesProduction is anticipated to reach a sustainable rate of 24 million cubic feet per day, although the company said facilities can be easily expanded to 40 million cubic feet per day.
The reservoir in the new field is at a depth of only 2,000 feet and the producing wells are flowing gas at rates five to 10 times the historical average for the trend, Pioneer said.
Horizontal drilling is being used for the first time in the area and is contributing to the high production rates.
Pioneer said it has accumulated a land position of 375,000 acres at an average working interest of 98 percent at a cost of less than C$70 per acre.
The company said six look-alike prospects have been identified on the lands and two prospect wells have tested gas.
Pioneer Chairman Scott Sheffield said the new play is expected to make a significant contribution to his company’s targeted production growth of 30-35 percent in Canada this year.