By OGJ editors
HOUSTON, July 16 -- Nexen Inc., Calgary, said it has more than doubled its land position in Northeast British Columbia, where it drilled eight wells in the Horn River basin in the first quarter of 2010.
The company plans to start production by yearend and to be flowing 50 MMcfd of gas in early 2011.
Drilling time for the eight wells averaged less than 25 days, down 35% from the company’s previous program even though the 2010 wells penetrated 80% more hole in horizontal laterals in the productive reservoir. Stimulation is under way and is to average 18 fracs/well.
Nexen said, “Based on what we know today, this play is expected to earn a 10% rate of return with gas prices at (US) $4/Mcf.”
Success at a land sale in June hiked the company’s holding to more than 300,000 acres from 128,000 before the sale, making it one of the largest shale gas players in the area. Nexen previously held 90,000 acres at Dilly Creek, estimated to contain 3-6 tcf of recoverable contingent resource, and 38,000 acres at Cordova.
The newly acquired lands “contain plays that are similar to those on our Horn River lands,” Nexen said.