Deep Panuke future under drill bit

The chances of commercial gas production from EnCana’s Deep Panuke discovery offshore Nova Scotia are being put to the test.

EnCana and junior partner Marauder Resources East Coast spudded a new well Nov. 18, using the Rowan Gorilla VI jack-up rig.

The Dominion J-14 well is in the same region as Wolfville N-32, the Deep Panuke discovery, and MarCoh D-41, two wells that have tested in excess of 50 million cubic feet per day.

But EnCana has insisted in recent years that more gas is needed to bolster the economics of Deep Panuke, which has a projected 935 billion cubic feet of recoverable reserves.

It is expected J-14 will cost up to C$50 million and be completed by mid-January.

Based on a farmout agreement, Marauder stands to earn 20 percent after drilling and will have net holdings of 6,423 acres in the exploration license.

It also owns a 50 percent working interest in the Balmoral Block that has a potential drilling location along trend with the Deep Panuke find.

—Gary Park