Juniors target British Columbia shale
Backed by a wealth of experience in their management teams, Crew Energy and Canada Energy Partners have entered a joint venture deal that could help raise the lid on British Columbia’s shale gas prospects.
Their exploration program for 2008 will cover 35,500 acres of lands held by Canada Energy, starting with a three-dimensional seismic project and the drilling of five exploratory wells.
The lands are located in the Montney-Doig formation which is stirring investor interest as a result of successful commercial results.
Crew has C$120M budget Crew, which is targeting shale gas, coalbed methane and conventional gas, has an exploration and development capital budget of C$120 million for 2008 and has a bank facility of C$180 million.
It produced 9,641 barrels of oil equivalent per day in the fourth quarter of 2007, up 55 percent from a year earlier, and is chasing 11,400-12,200 boe per day this year.
The joint venture expects to spend C$20 million-$25 million, with Crew as operator to earn a 50 percent working interest.
Crew also has 7,360 net acres in the Muskwa shale play where EOG Resources has claimed a possible find of 6 trillion cubic feet.
A third-party evaluation rates Crew’s potential Muskwa gas-in-place at 400 billion to 1.2 trillion cubic feet.
Canada Energy has a net 41,000 acres in Montney-Doig. Its chairman, John Proust, acquired 34,000 shares for C64 cents each in early February.
—Gary Park
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