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A monster British Columbia well just south of the 60th parallel is pumping a tremendous volume of natural gas from a globally significant new play that stands to dramatically boost Canada’s gas resources.
Until Thursday, it was a secret, drilled in 2009 and kept under wraps while Houston-based Apache Corp. snapped up more potentially prolific land around it. Revealing results from the well, Apache called it “the most prolific shale gas resource test in the world.”
And the Liard Basin where the well is situated, about 150 kilometres northwest of Fort Nelson, B.C., stands to be the “best unconventional gas reservoir in North America,” the company said. Initial results show it contains enough gas to match Canada’s entire current output for nearly a decade.
That’s based in part on that single well from 2009, which produced 21 million cubic feet per day during its first month, after being “fracked” – a technique used to free shale gas – six times. In other shale gas reservoirs, companies use 18 fracks – and more – to cause even more gas to flow.
The overall estimates are early, and geologists cautioned against placing too much stock in numbers generated from relatively scant data. And though Apache said it believes wells in the Liard could be profitable at a well-head price of $2.57 (U.S.) per thousand cubic feet – not far from the current price of natural gas in the central U.S. – others said those predictions could prove optimistic. A single Liard well costs $35-million to drill and complete.
Still, there is little doubt about the importance of the Liard discovery, though it comes at a time when the industry is confronting a gas glut that has severely depressed prices.
Apache is nonetheless highly bullish on a play it began exploring in 2007.
“It’s the most exciting thing I’ve ever worked on,” said Robert Spitzer, the company’s Canadian vice-president of exploration, who has spent 31 years doing this kind of work.
For the rest of this article, please go to the Globe and Mail website: http://www.theglobeandmail.com/globe-investor/massive-bc-reservoir-could-double-gas-output/article4264200/