EnCana sees 4 tcf recoverable at Cutbank Ridge, western Canada

By OGJ editors
HOUSTON, Sept. 23 -- EnCana Corp., Calgary, said it acquired 500,000 net acres in the Alberta-British Columbia foothills in a play from which it expects to recover more than 4 tcf of gas.

The company spent $500 million the past year on drilling and land purchases, examined 300 well logs, and drilled 25 wells to establish production profiles. The play, known as Cutbank Ridge, is expected to support production of several hundred million cubic feet per day of long-lived gas production from the Lower Cretaceous Cadomin formation, the company said.

A preliminary development plan calls for the drilling of 100-200 wells/year.

The play is centered about 50 km southwest of Dawson Creek, BC. EnCana acquired 150,000 net acres the past 18 months via purchases, land swaps with other companies, and Crown land sales. It paid $369 million at recent provincial land sales for majority interest in 350,000 net acres.

EnCana described the play as gas in continuous (basin centered), tight sandstone reservoirs extensively delineated by previous industry drilling. It said technological advances in drilling and completion techniques have made the play economic and that the reservoir characteristics support long-term, predictable gas production growth.

Cutbank Ridge is expected to yield more than 6 bcf/section based on two horizontal wells per section. Costs are placed at $4 million/well for drilling, completion, sales tie-in, and facilities. Cadomin is about 100 ft thick and 8,000 ft deep.

EnCana anticipates Cadomin steep first-year production declines followed by declines that average less than 15%/year for years thereafter.

Randy Eresman, EnCana chief operating officer, said, "We estimate full-cycle finding and development costs of approximately $1.50 per thousand cubic feet of gas."

EnCana said Cutbank Ridge is similar to its attractive gas development projects in Greater Sierra, northeast British Columbia, in the Upper Devonian Jean Marie formation (see map, OGJ, June 24, 2002, p. 38) and Mamm Creek field, Colorado, in the Cretaceous Mesaverde formation (OGJ, Dec. 10, 2001, p. 44).

The company said it stepped up its investment in BC to more than $1 billion this year from $700 million as a "clear endorsement of the progressive steps taken by the BC government to provide the conditions required to attract these huge capital commitments. In Greater Sierra, we have increased our summer drilling to 80 wells-double our initial plan."

The company commended the government for "improving the investment climate through targeted royalties, upgrading of roads, the adoption of summer drilling incentives, enhanced tax competitiveness and streamlined regulatory processes."

Related Articles

Shell cuts $15 billion in spending for 2015-17

01/30/2015 Royal Dutch Shell PLC has curtailed more than $15 billion in potential spending over the next 3 years, but is not “not overreacting to current low ...

Chevron’s $35 billion capital budget down 13% from last year

01/30/2015 Chevron Corp. will allocate $35 billion in its capital and exploratory investment program for 2015, including $4 billion of planned expenditures by...

Oxy cuts capital budget by a third

01/30/2015 In the midst of falling oil prices, Occidental Petroleum Corp., Houston, expects to reduce its total capital spending for 2015 to $5.8 billion from...

PwC: Low oil prices might drive surge in restructuring in 2015

01/29/2015 Mergers and acquisitions (M&A) in the oil and gas industry hit 10-year highs in terms of deal value and volume in 2014, according to a report f...

Harvest drops Venezuelan arbitration move

01/29/2015 Affiliates of Harvest Natural Resources Inc. have withdrawn a request for international arbitration alleging the government of Venezuela hampered e...

Shell, Iraq ink deal for petrochemicals complex

01/29/2015 Royal Dutch Shell PLC has entered a preliminary agreement with Iraq to construct an $11-billion grassroots petrochemicals complex in the country’s ...

ASMP report lists routes to shale-stimulated manufacturing rebound

01/29/2015 The US shale oil and gas renaissance has created a manufacturing rebound that could produce even more jobs and stimulate further economy growth wit...

ConocoPhillips revises down $2 billion from budget

01/29/2015 ConocoPhillips has shed an additional $2 billion from its capital expenditures for 2015, decreasing total spending to $11.5 billion from the previo...

OMV trims annual investments for 2015-17

01/29/2015 Austria’s OMV AG says it is reducing its annual investments for 2015-17 to a range of €2.5-3 billion. Before the drop in oil prices, the company ha...
White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts

On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected