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Fracking approval for Conoco for 2 test wells near Norman Wells
Canada’s National Energy Board has given the go-ahead for ConocoPhillips to undertake the first horizontal fracturing program in the Northwest Territories.
A company spokesman said that assuming favorable weather, ConocoPhillips will start drilling the first of two wells in December on Exploration License 470 which covers 216,000 acres near Norman Wells in the Central Mackenzie Valley.
ConocoPhillips has also received approval from the Sahtu Land and Water Board for a related land-use permit and water license.
NEB said it “recognizes the importance of fostering better understanding and communication with all stakeholders that take part in the board processes and engaging Canadians is a priority.”
Over the past two years, NEB staff have conducted more than 25 public information and community engagement sessions in the NWT on how it regulates hydraulic fracturing.
It expressed satisfaction with ConocoPhillips’ “risk assessment” of conducting fracking, including a review of the geology and fault identification and the proposed mitigation measures and commitments such as microseismic monitoring.
NEB satisfied with mitigation measures The NEB said it was satisfied with the company’s mitigation measures and commitments relating to wellbore integrity, including the casing design, cementing program, cement bond log evaluation program and casing integrity pressure test plans.
The company plans drilling to depths of 5,250-6,560 feet, with a horizontal section of 3,300 feet.
It will evaluate data from both wells to determine “flow ability of hydrocarbons,” then seek approval from the NEB for additional work in the Central Mackenzie.
A spokesman said the wells are exploratory and test work and will require an extensive appraisal program to determine whether they are capable of commercial production.
For now, ConocoPhillips is not disclosing estimated well costs.
The company was one of five that secured rights to 11 parcels of Central Mackenzie land in 2011 for work commitments of C$534 million, with ConocoPhillips making a successful bid of C$66.7 million.
Decision on Amauligak in late ’14 The company is also working on a study that is expected to allow a decision by late 2014 on development of its Amauligak Significant Discovery License in the Canadian Beaufort, along with partners Chevron Canada and Atco Gas.
The Amauligak find is the largest in the region with an estimated 350 million-360 million barrels of recoverable oil and 2.3 trillion cubic feet of natural gas.
Sheila Reader, the company’s vice president for the Canadian Arctic, told a Calgary conference in late October that the company is in the second year of a three-year study to explore various issues in advance of preparing a design concept to drill wells and develop the offshore field.
—Gary Park
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