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Deep Panuke a ‘keeper’ for EnCana
Regardless of delays, shrinking reserve numbers and questions about future ownership, EnCana continues to stay the course with its Deep Panuke gas project.
Although focused almost exclusively on onshore resource plays and the oil sands, the big Canadian independent shows no signs of backing away from the offshore Nova Scotia venture.
Chief Executive Officer Randy Eresman told a Feb. 15 conference call that Deep Panuke is “a keeper for us. It will be a great addition to EnCana’s overall portfolio.”
Regulatory hearings to start Gerry Protti, president of EnCana’s offshore and international division, said the immediate focus is on the March 5 start of regulatory hearings.
Otherwise, EnCana is seeking expressions of interest for some major components and is exploring its pipeline options.
Eresman conceded that the company’s other activities off Canada’s East Coast have not been all that successful and, for that reason, exploration has been cut back.
In a recent update of Deep Panuke reserves, estimates ranged from 392 billion to 892 billion cubic feet, with a mean 632 bcf, falling short of initial estimates of 1.1 trillion cubic feet. Based on those number, production is expected to peak at 300 million cubic feet per day, off 25 percent from original targets.
If regulatory approval is obtained, EnCana hopes to make a final decision this year on whether to proceed.
—Gary Park
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