EnCana to bank heavily on unconventionals

By OGJ editors
HOUSTON, May 27 -- Unconventional gas and oil plays represent the future for EnCana Corp. and the North American oil and gas industry, EnCana said May 27.
EnCana has established a portfolio of nine gas and four enhanced oil resource plays, said Jeff Wojahn, executive vice-president and president of EnCana's USA division. Wojahn and other principals discussed its positions in the high-pressure, high-temperature established Jurassic Deep Bossier sand and emerging Haynesville plays in East Texas and North Louisiana.

Gas deliveries have grown to more than 7 bcfd in January 2009 from 2 bcfd in January 2006 from the Barnett, Fayetteville, Woodford, and Haynesville shales alone, EnCana said. Of that, the Barnett supplies about 5 bcfd.

North America consumes about 25 tcf/year of gas, and close to half of that comes from unconventional reservoirs including tight sands, shales, and coalbed methane, the company noted.

EnCana, like many operators, has a 2009 priority to demonstrate the commerciality of its Haynesville shale acreage and hone its strategy to drill and prove its holding. EnCana has diverted $290 million of its 2009 budget to retain land in the Haynesville play, most of it in the company's core area in Red River and De Soto parishes.

Efforts to prove and hold acreage are likely contributing to the current rig count of 75-80 rigs in the Haynesville, EnCana said. Nevertheless, only a few Haynesville wells have more than 6 months of production history.

The Deep Bossier play in East Texas has the best returns in EnCana, and the Haynesville could become the company's leading resource play, said Paul Sander, vice-president, Midcontinent business unit.

Deep Bossier activity in 2009 centers on Hilltop South and West fields, where the formation is 2,000-3,000 ft deeper than at Amoruso field, where development continues. It is also completing Reagan sands deeper in the Jurassic section.

EnCana, with nine rigs running, is also exploring adjacent areas and has identified 250 locations, enough for 6 years of drilling.

In the Haynesville, EnCana has divided its drilling staff into teams each responsible for a particular section of hole. The company has drilled 16 horizontal Haynesville wells.

EnCana has stepped up efforts to multiply and enlarge its Haynesville frac stages after noticing a direct relationship between the volume of proppant placed and initial flow rates and estimated ultimate recovery.

The company has moved from 1 million lb of proppant and eight fracs/well initially to more than 3 million lb of proppant in 12 stages.

The Haynesville could rival the quality and scope of the Barnett, Sander said.

EnCana also plans to exploit the Mid-Bossier shale. Just above the Haynesville in Louisiana, it is 180 ft thick with gas in place and development costs similar to that of the Haynesville. EnCana didn't specify EURs for the Mid-Bossier but said they could be comparable to those in the Haynesville.

Almost 15 bcfd of gas pipeline capacity is to be built in the Texas Midcontinent and Gulf Coast region in 2007-12, said Renee, Zemljak, vice-president, USA midstream and marketing. EnCana holds sufficient downstream capacity for all of its gas, she said.

Related Articles

Michie named Oil & Gas UK chief executive

02/27/2015

Deirdre Michie has been named chief executive of Oil & Gas UK, replacing Malcolm Webb, who will retire May 31.

Suriname bid round draws lackluster response

02/26/2015 The dramatic fall in oil prices is being blamed for the lack of interest shown by international oil companies (IOCs) in the deepwater offshore Suri...

Uganda announces tender for Albertine Graben acreage

02/26/2015

The virtually untouched Albertine Graben of Uganda may contain more than 6.5 billion bbl of oil resources according Ugandan officials.

BLM Utah office adopts USFS leasing analysis for Fishlake Forest

02/26/2015 The US Bureau of Land Management’s Utah state office will adopt the US Forest Service’s final environmental impact statement and record of decision...

New regulator lists UKCS ‘priority actions’

02/25/2015 The UK’s Oil and Gas Authority, responding to calls from industry and the government for prompt support of UK Continental Shelf (UKCS) exploration ...

BLM moving toward strategy for Greater Sage Grouse, Jewell says

02/25/2015 Calling it a remarkable example of federal, state, and local cooperation, US Sec. of the Interior Sally Jewell said the US Bureau of Land Managemen...

Santos-Inpex JV gains permits in Browse basin

02/25/2015 A joint venture of Santos Ltd. and Inpex Corp. has been awarded two exploration permits in the Browse basin offshore Western Australia, about 500 k...

Lime Petroleum farms into Gemini prospect offshore Norway

02/24/2015 Lime Petroleum Norway AS, a wholly owned subsidiary of Lime Petroleum PLC, has agreed to take 30% interest in PL338C in the North Sea from Lundin N...

BP lets contract for Great Australian Bight exploration program

02/24/2015 BP Australia has let a contract to ASCO Group for the supply base management of its forthcoming exploration drilling program in the South Australia...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

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...
Available Webcasts


Cognitive Solutions for Upstream Oil and Gas

When Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


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


Emerson Micro Motion Videos

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