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Drilling season nears meltdown Busy winter as operators chase reserves to back nominations for space on Mackenzie Valley natural gas pipeline; Canadian government helps North realize potential Gary Park Petroleum News Calgary Correspondent
Northern Canada ended the first quarter with just three rigs at work and spring thaw fast approaching. But the winter season has been active, as E&P companies have tried to build natural gas reserves to nominate for the planned Mackenzie Valley pipeline.
Based on discussions and negotiations, Imperial Oil, operator of the Mackenzie Gas Project, has extended a March 15 deadline for potential shippers to nominate for precedent agreements that set the stage for firm shipping commitments.
In a separate development, the Canadian government’s 2004-05 budget included C$90 million over five years to ensure that economic development opportunities are pursued in partnership with Northern Canadians and C$75 million over three years to ensure that the government and regional authorities respond in a “timely, responsible and effective” manner to pipeline and oil and gas development.
Indian Affairs and Northern Development Minister Andy Mitchell said the provisions follow earlier commitments to develop a northern strategy and “lay the groundwork for sustainable growth” in the region at a time when the North is preparing for investments of C$3.7 billion. Work ongoing at seven wells By late March, seven wells were being drilled in the onshore Mackenzie Delta region and the central and lower Northwest Territories, while operators had completed another six. Of the total, four were listed as completions.
On the Delta, a partnership of EnCana as operator, Anadarko Canada and ConocoPhillips Canada were hoping to complete the Umiak N-16 exploration well by the mid-April deadline.
The well on Richards Island, where EnCana shot seismic in 2003, is targeting a depth of just over 11,000 feet.
Chevron Canada Resources, with partners BP Canada Energy and Burlington Resources, are well past the halfway mark of a well expected to reach about 11,100 feet on Ellice Island, while Chevron is shooting about 96 square miles of seismic south of the island.
At Tweed Lake, Petro-Canada is completing a re-entry of a gas well that was first drilled in 1985.
In the Central Mackenzie, Apache Canada and Paramount Resources are drilling two exploration prospects south of the Colville Hills to the northeast of Norman Wells.
In addition, Apache is completing a Nogha M-17 re-entry, a wholly owned well that was completed as a successful gas well in 2003, but not perforated and flow tested due to spring break-up.
An C$18 million well in the Flintstone mountain range in the Central Mackenzie is under way with a partnership of Northrock Resources as operator, EOG Resources Canada, Husky Oil Operations, Pacific Rodera Ventures and International Frontier Ventures.
Meanwhile, International Frontier reported in late March that its Summit Creek B-44 exploratory wildcat was drilled to a depth of 9,950 feet, logged and drillstem tested. Anadarko releases two rigs Anadarko, setting a lively pace in the north, has rig released two wells at Arrowhead River — one a delineation well and one an exploration well, both of which were drilled last winter and have been re-entered for completions.
The company has also drilled an exploration well at Emile Lake A-77 north of the Arrowhead, with a targeted depth of about 7,500 feet.
In the producing Liard region, Chevron, with Purcell Energy as a 24 percent partner, is completing a re-entry development well to a depth of more than 12,100 feet and has approval for a second re-entry — both of them follow-ups to the 2K-29 development wells drilled last year. The original K-29 discovery well has produced at a peak of 75 million cubic feet per day.
Nearby, Paramount Resources has approval for a 6,650-foot re-entry that was drilled in 1998 with Berkley Petroleum.
Paramount and its partners have drilled five gas wells at Cameron, southeast of the Fort Liard well, followed up by two entries, and has licensed another three re-entries.
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