Juniors have major Alberta gas strike

A major natural gas find in the west-central area of Alberta is being claimed by junior E&P company RSX Energy.

The discovery well was drilled to a total depth of 10,690 feet in the Hinton area and tested at a maximum flow rate of 7.3 million cubic feet per day, limited by equipment at the site.

The well has a calculated absolute open flow of about 100 million cubic feet per day, with maximum deliverability of 27 million cubic feet per day, constrained by well site facilities.

Partners in the well are Cabot Petroleum Canada, a unit of Houston-based Cabot Oil & Gas.

RSX President Lee Baker said the company believes the reservoir pressure could rank among the top five or six in Alberta.

Land sales in the area in January generated a successful bid of C$8 million by Cavalier Land, which committed an average C$10.421 per hectare.

Baker said RSX and Cabot are weighing two or three development wells and two additional exploration locations, but for now he was not prepared to disclose reserve estimates.

—Gary Park