Nexen expands Northeast BC holding, runs fracs

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.

Related Articles

Liard and the Besa River shale

08/20/2012

Northern Canada’s lesser-explored basins leave lots of scope for big plays, including in thick sections of Devonian-age sediments.

Quicksilver, KKR form partnership for Horn River midstream

12/28/2011 Units of Quicksilver Resources Inc., Fort Worth, and Kohlberg Kravis Roberts & Co. LP have formed a midstream partnership to build and operate ...

Nexen, Inpex form venture to develop BC shale gas

11/29/2011 Nexen Inc. and a consortium led by Japan’s Inpex Corp. agreed to create a joint venture to develop unconventional shale gas assets in the Horn Rive...

Pembina to expand Montney shale NGL pipeline capacity

11/11/2011 Pembina Pipeline Corp. will install five new pump stations and upgrade five existing pump stations to expand NGL throughput capacity on its Peace a...

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