Canadian Natural keeps Ladyfern momentum alive

Gary Park

Canadian Natural Resources is planning up to nine wells in northeastern British Columbia’s Ladyfern area, currently the top-rated gas play in North America.

With results consistently coming in better than initial indications, CNR chairman Allan Markin said his company is negotiating with fellow operators, Murphy Oil and Alberta Energy Co., to develop a plan of arrangement for producing the area.

He said CNR’s latest Ladyfern well is capable of yielding 100 million cubic feet per day from the complex Slave Point formation, almost double what was originally projected.

The company’s first Ladyfern well has been tied in to 50 million cubic feet per day and is expected to double that output sometime in August.

A second well is being tested and a third has been spudded, Markin said.

With the pool size now conservatively placed at 500 billion to 1 trillion cubic feet, CNR is targeting another four or five wells, although heavy rains have slowed the arrival of two rigs and a service rig.

Once the first well is fully on stream, CNR will have increased its total gas production to 940 million cubic feet per day, keeping it on pace with its chief independent rivals, AEC and Talisman Energy.