Alberta's Nikanassin zone has resource play

By OGJ editors
HOUSTON, July 14
-- Daylight Resources Trust, Calgary, said it is working on a strategy to develop a gas resource play in the Jurassic Nikanassin zone just below Cretaceous Cadomin at Elmworth in the Alberta Deep Basin.

Two vertical wells in the first quarter found more than 100 m of sand in the Nikanassin at 2,700-3,200 m and came on production in March and April at initial rates of 2-3 MMcfd of gas.

Daylight Resources plans to drill one more vertical delineation well and a horizontal well before the end of the 2009-10 winter drilling season. It holds Nikanassin rights in more than 51,200 acres at Elmworth.

The company said it is investigating the potential for using the same advanced horizontal drilling and multistage fracturing technologies on the Nikanassin that it has applied in the Cadomin.

Due to weak natural gas prices, Daylight Resources has deferred the majority of its planned gas expenditures for the 2009 second quarter and early third quarter to late third quarter and fourth quarter.

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