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MGV notches success with coalbed tests in Alberta
Gary Park Petroleum News Calgary correspondent
Coalbed methane producer MGV Energy is notching success in its southern Alberta plays, logging output of 200,000 cubic feet per day from test wells.
Glenn Darden, president of Texas-based Quicksilver Resources, the parent company of MGV, said the wells north of the Palliser block are averaging double the volumes from MGV’s commercial wells northeast of Calgary.
He told a conference call May 10 that the coals are “very consistent over quite a large area and we’re not seeing any water.” Five projects outside Palliser going online this year Darden said five different development projects outside the Palliser block will be brought on this year, with the major focus on the Horseshoe Canyon area, which can come on stream without dewatering delays.
With 180 coalbed methane wells now in production, MGV quadrupled output in the first quarter to 18.6 million cubic feet per day from a year ago and received an average US$4.52 per thousand cubic feet for its gas.
The company is targeting 21 million cubic feet per day in the current quarter and expects to end 2004 at 35 million cubic feet.
Quicksilver, with a land base of 525,000 net acres, has budgeted US$89 million for Canada this year, the bulk going to coalbed methane.
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