Two exploratory gas wells of special interest to the Mackenzie Gas Project are now being drilled on the Mackenzie Delta, helped by an early freezeup in the area, and a third is on the schedule for the current winter.
An EnCana-led partnership with Anadarko Canada and ConocoPhillips Canada spudded exploratory Umiak N-05 well on Jan. 7, just three weeks after a Chevron Canada Resources-BP Canada Energy joint venture started the Olivier H-01 well, which should reach its targeted depth of about 11,500 feet by late March or early April.
In addition, Chevron and BP have regulatory authorization to drill another exploratory well, Olivier 2H-01, to a depth of 10,300 feet.
At stake are the hopes of finding new supplies to fill the proposed Mackenzie Valley pipeline to its initial capacity of 1.2 billion cubic feet per day.
Akita Drilling’s No. 63 rig is contracted for both Chevron-BP wells and No. 62 is drilling Umiak N-05.
Encouraging hydrocarbons found
The N-05 well on Richard’s Island is only two kilometers from Umiak N-16 which was drilled to a depth of about 10,200 feet last winter and encountered hydrocarbons that were described as “encouraging,” EnCana spokesman Alan Boras told Petroleum News. N-16 is due for testing this winter to assess its commercial value.
EnCana is not disclosing the projected depth and cost of N-05 on Exploration License 384, although drilling is expected to last six weeks. However, National Energy Board frontier statistics set the targeted depth at almost 11,900 feet.
Boras said the freezeup allowed work to be completed ahead of normal on an ice road to the drill site. Chevron-BP got an even faster start by barging supplies and equipment to the Olivier site in late summer.
N-16, with EnCana holding 37.5 percent, Anadarko 37.5 percent and ConocoPhillips 25 percent, was shut down in mid-April and is scheduled for testing this winter to determine its commercial value.
It was the first pure exploration well by EnCana in the Delta region and is viewed by the big Canadian independent as part of its strategy to build long-term reserves.
EnCana finds Arctic attractive
Given the gas supply/demand outlook, EnCana believes the Arctic is now a much more attractive prospect.
ConocoPhillips is already a key player on the Delta, as one of four owners of anchor fields on the Delta that underpin the Mackenzie application — an asset it picked up in its C$6.9 billion takeover of Gulf Canada Resources.
It holds 75 percent of the 1.8 trillion cubic foot Parsons Lake find, with ExxonMobil Canada controlling the remaining 25 percent. Anadarko purchased its 37.5 percent working interest in two exploration licenses adjacent to the Parsons Lake field from Alberta Energy Co. (one of the two founding companies of EnCana) in 2000.
The licenses, covering 530,000 acres, augmented Anadarko’s previous acquisition of Canadian Arctic holdings, consisting of interests ranging from 3.4 percent to 24 percent in 10 significant discovery licenses and one production license, with a combined area of 142,000 acres.
