EnCana plans more Mackenzie Delta gas drilling this winter

Gary Park

Hopes of additional gas reserves in the Mackenzie Delta have been raised by word from EnCana of encouraging results from its first exploration well in the region earlier this year.

Randy Eresman, chief operating officer of the Calgary-based independent, confirmed to analysts in a July 27 conference call that the well encountered hydrocarbons, without disclosing any further details.

EnCana, as 37.5 percent operator of the Umiak N-16 well on Richard’s Island, now plans to return to the delta this winter for additional drilling.

N-16 was drilled to a depth of almost 9,400 feet before being rig released.

The other partners are Anadarko Canada 37.5 percent and ConocoPhillips Canada 25 percent.

They are among seven companies in the Mackenzie Delta Explorers Group which is being counted on to provide as much as 400 million cubic feet a day of gas to support a one-third equity stake in the proposed Mackenzie Valley pipeline by the Aboriginal Pipeline Group.

Chevron Canada Resources, as operator, BP Energy Canada and Burlington Resources also drilled an exploration well last winter on Ellice Island, targeting a depth of about 13,100 feet, while Chevron shot about 72 square miles of three-dimensional seismic south of the island. An update on the well has yet to be released.

The results of these drilling efforts are crucial to firm up volumes for nomination for the pipeline.

In response to strong interest, Mackenzie Gas Project operator Imperial Oil agreed earlier this year to extend a March 15 deadline for potential shippers to determine how much gas they want to nominate for firm shipping commitments.