Sharp decline in NE B.C. gas play

One of the hottest gas producing regions in Canada may be into reversal, says AJM Petroleum Consultants.

The Upper Devonian play of northeastern British Columbia has tumbled dramatically from a peak 625 million cubic feet per day in mid-2004 to 450 million by late last year.

AJM Chief Executive Officer Robin Mann said that even if the decline stems from a wet 2004 summer, rig shortages and land access issues, it is a warning signal to producers to watch the trends carefully over the next year or two.

Elsewhere in the Western Canada Sedimentary basin he found cause for hope, listing growth in seven areas, notably Deep basin which straddles the British Columbia-Alberta border and has seen output surge to 1.9 billion cubic feet per day from 1 bcf in the past five years.

Other growth areas include Saskatchewan, which is up seven-fold since 2000 to 120 million cubic feet per day and the Horseshoe Canyon coalbed methane play in central Alberta, which has increased by 120 million in less than two years.

—Gary Park