By OGJ editors
HOUSTON, Nov. 17 -- EnCana Corp., Calgary, filed new regulatory applications to develop Deep Panuke dry gas field in the Atlantic off Nova Scotia. The new filing calls for a $700 million (Can.) development cost during 2006-10 and projects operating costs of $150 million/year.
The project is to recover 390-890 bcf of sales gas, with a mean estimate of 630 bcf, at the rate of 300 MMcfd. The field would produce for 8 to 17-1/2 years.
The company proposed two pipeline options: One is an offshore connection to the Sable Offshore Energy Project pipeline, operating since the end of 1999. The other is a separate 176-km subsea pipeline adjacent to the SOEP line with a linkup onshore near Goldboro, NS. Either would deliver to the Maritimes & Northeast Pipeline.
EnCana predecessor PanCanadian Petroleum Ltd. discovered the Deep Panuke Jurassic gas accumulation in 150 ft of water on the Scotian shelf in early 2000 some 250 km southeast of Halifax (OGJ, Mar. 20, 2000, p. 79).
Regulators approved the first application in December 2002, but the company placed the (then) $1 billion project on hold to give itself time to evaluate gas marketing options in the Maritimes and other exploration prospects to be drilled (OGJ Online, Feb. 14, 2003).
Part of an Offshore Energy Agreement with Nova Scotia calls for EnCana to contribute financial and human resources to facilitate development of a land drilling rig manufacturing operation in the province. EnCana would contribute $1 million for each of the first 5 rigs manufactured.
The company also promised to provide first consideration to Nova Scotians, where competitive, in the award of opportunities associated with the project.