Thunder Energy rolling into British Columbia on heels of Impact merger

Gary Park

Petroleum News Calgary correspondent

Canadian junior Thunder Energy is set to extend its reach into northeastern British Columbia once its merger with Impact Energy is completed on April 30.

The company plans to spend C$40 million of its capital budget in British Columbia, C$30 million on its central Alberta activities and C$8 million on a summer coalbed methane program in Alberta, president and chief executive officer Doug Dafoe told analysts.

Thunder is counting on commercial coalbed methane from at least one of its Alberta projects this year as it steps up drilling to 125 wells from 110 in 2003.

With the merger, combined output will be 10,000 barrels of oil equivalent per day, with natural gas output targeted at 70 million cubic feet per day by this time next year, he said. Proved plus probable reserves will be 204 billion cubic feet of gas and 9 million barrels of oil and natural gas liquids.

Dafoe said that the new British Columbia properties hold a number of discovered resources that need to be in-filled and linked to processing facilities.

Once the deal is completed, Thunder will have a working interest of 50 percent on 58 sections of land and 95 percent over 85-150 sections of land in Alberta.

But, despite the accelerated activity, Thunder expects production will remain flat at 50 million cubic feet per day of gas and 1,700 boe per day.