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Winter drilling yields mixed bag Chevron find ‘commercial;’ two other Mackenzie wells disappointing Gary Park Petroleum News Calgary Correspondent
The winter drilling season in Canada’s Mackenzie Delta, seeking new reserves to fill up the proposed Mackenzie Valley pipeline, produced one hit, one balk and one walk.
The hottest news came April 24 when a partnership of Chevron Canada Resources, as operator, BP Canada Energy and Burlington Resources Canada said the North Langley K-30 well had struck gas in “commercial quantities.” Chevron and Burlington shared the C$8 million costs under a farm-in arrangement with BP.
It was spudded March 7, drilled to about 6,500 feet by Akita Equtak Drilling, a joint venture of Akita Drilling and the aboriginal-owned Inuvialuit Development Corp., and tested at a restricted flow rate of 18 million cubic feet per day.
But the news was less encouraging on other fronts. Petro-Canada reported April 29 that its Nuna I-30 exploration well drilled with Devon Canada was suspended in April due to spring thaw, while Devon-Shell Canada’s Itiginkpak F-29 exploration well was plugged and abandoned.
Petro-Canada Chief Executive Officer Ron Brenneman told analysts in a conference call that a decision will be made later on whether to complete I-30. Petro-Canada says it will be shipper The well is on trend with the partnership’s Tuk M-18 significant discovery well that has estimated recoverable reserve potential of up to 300 billion cubic feet and sustained deliverability of up to 80 million cubic feet per day.
Without commenting further on I-30, Brenneman was emphatic that if a Mackenzie Valley pipeline is in service by 2008, Petro-Canada “will be a shipper.”
Because F-29, 17 miles northwest of Inuvik, was a wildcat “we always learn from those,” Devon Canada Frontiers Vice President Michel Scott told Petroleum News.
Far from being discouraged, he said Devon is continuing to work its large onshore and offshore exploration licenses in the area.
Scott said a decision to proceed with applications for a Mackenzie Valley pipeline would not change Devon’s strategy, but would “give us confidence to continue” by removing uncertainties. North Langley in new zone Commenting on the North Langley find, Lynn Lehr, manager of communications and external affairs with Chevron Canada, told Petroleum News that until results are evaluated the potential reserves will remain confidential.
But she said the partners are upbeat because the discovery is in a “new zone,” representing the first Tertiary discovery from exploration lease sales in 1999 and 2000.
It is 81 miles northwest of Inuvik and seven miles from the 900 billion cubic foot Niglintgak field owned by Shell Canada.
Niglintgak is one of three anchor fields that comprise the 5.8 to 6 trillion cubic feet of reserves held by Imperial Oil, ConocoPhillips Canada, Shell Canada and ExxonMobil Canada that make up the Mackenzie Delta Producers Group. More wells to be permitted Chevron Canada President Alex Archila said in a news released April 24 that the partners will “proceed with the regulatory process to permit additional exploratory well locations in the region as possible candidates” for next winter’s drilling season.
He said the discovery “encountered exactly what we had projected we would find.”
Burlington Resources Canada President Mark Ellis rated K-30 as “solid progress in advancing our position in this highly prospective areas.”
BP Canada Vice President of Exploration John Pritchett said the discovery is a “positive step and we look forward to seeing the results of our future exploration activities in the area.”
Lehr said the partnership is hopeful the discovery will allow it to become “more engaged” in discussions with the Delta producers and the Aboriginal Pipeline Group about plans for bringing Delta gas into production.
K-30 represents potential reserves needed to support a one-third equity stake in the proposed Mackenzie Valley pipeline by the Aboriginal Pipeline Group which needs volumes of up 500 million cubic feet per day from Delta and Mackenzie Valley sources outside the main producers’ group.
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