Chevron Corp. is drilling its first well in Alberta’s Duvernay formation during the third quarter, Chevron Chief Financial Officer Patricia Yarrington told analysts during an earnings conference call on Oct. 28.
The Duvernay well spudded during the third quarter, Yarrington said. Earlier this year, Chevron said it accumulated 200,000 acres in the play at what it called a reasonable entry price (OGJ Online, Feb. 10, 2011).
The Alberta Energy Resources Conservation Board is evaluating the Devonian Duvernay among various shale formations targeted in a 2-year, $2 million resource assessment. The Alberta government has reduced royalty rates for shale gas wells.
In response to questions from analysts, Yarrington said Chevron has “continued to add significantly in unconventional properties” over the last 18 months.
In other shale-related news, Chevron Downstream & Chemical Vice-Pres. Mike Wirth said the chemical division is contemplating building an ethane cracker on the US Gulf Coast that would utilize feedstock from the development of shale gas.
“We’ll keep you advised as this project progresses,” Wirth said of an ongoing feasibility study on whether to build an ethane cracker. He did not provide any additional details.