Shale gas find declared in NWT Pointed Mountain area

By OGJ editors

Canada’s National Energy Board granted a commercial discovery declaration to Lone Pine Resources Inc., Calgary, with respect to the Upper and Lower Besa River shale intervals in the Pointed Mountain field area of the Liard basin in western Northwest Territories.

“It is reasonable that all of Lone Pine’s 66 sections are developable by the use of hydraulic fracturing,” NEB said, adding that “there are reasonable grounds to believe that the commercial discovery extends at least throughout the applied-for frontier lands.” Lone Pine has a 100% operated working interest in 52,202 acres at Pointed Mountain.

Lone Pine, which applied to the NEB for the CDD in February 2012, now has contacted Aboriginal Affairs & Northern Development Canada for the standard 21-year lease extension in accordance with Sec. 62 of the Canada Oil & Gas Lease Regulations.

In the last half of 2011, Lone Pine reentered and recompleted the L-68 vertical wellbore to test two overpressured uphole shale formations. The L-68 well provided sweet gas flow rate data that support the potential deliverability of 12 MMcfd of gas from a multifractured horizontal completion, Lone Pine figures.

Lone Pine believes this analytical forecast is strongly supported by analogous data from nearby operators in the Liard basin as well as the adjacent Horn River basin. In particular, an Apache Corp.-operated well in Northeast British Columbia 60 miles south of the L-68 well had a 30-day gas flow rate of 21.3 MMcfd from the Lower Besa River.

Independently, Apache said it has identified 48 tcf of dry sales gas from 210 tcf of net gas in place on its acreage (OGJ Online, Aug. 20, 2012).

Lone Pine said existing infrastructure in the area includes roads and pipeline access to the Spectra Fort Nelson gathering system via the Pointed Mountain/Beaver River sour gas pipeline that crosses Lone Pine’s acreage.

The NEB’s CDD also acknowledges that the shale gas intervals “appear to be thicker over the Lone Pine lease area than the equivalent shales in Horn River basin” and further that “the thicker intervals combined with good reservoir parameters contribute to large original gas-in-place resource estimates.”

Lone Pine said the CDD is the first of its kind for an unconventional resource play that has been granted by the NEB.

Consulting engineers engaged by Lone Pine issued best, low, and high estimates of undiscovered shale gas initially in place in Upper and Lower Besa River shales on the company’s Pointed Mountain lands of 20.6 tcf, 14.4 tcf, and 28.4 tcf, respectively. The corresponding unrisked prospective shale gas resource figures are 3.8 tcf, 1.8 tcf, and 7.4 tcf as of Sept. 30, 2012.

Related Articles

Comstock to suspend 2015 oil drilling in Eagle Ford, TMS

12/19/2014 Due to low crude oil prices, Comstock Resources Inc., Frisco, Tex., plans to suspend its 2015 oil-directed drilling activity on properties in the E...

Mexico uses PSCs in first Round One step

12/19/2014 Mexico is offering production-sharing contracts to companies incorporated in the country for exploration of 14 shallow-water areas in Round One bid...

BASF, Gazprom cancel asset swap

12/19/2014

BASF and OAO Gazprom have agreed not to complete an asset swap that was scheduled for yearend.

AWE pulls out of Otway permit

12/19/2014 AWE Ltd., Sydbey, has decided to pull out of Perth-based junior WHL Energy Ltd.’s offshore Otway Basin permit Vic-P67 after a series of time extens...

Marathon cuts 2015 budget amid ‘current price environment’

12/18/2014 Marathon Oil Corp. expects to spend $4.3-4.5 billion in its capital, investment, and exploration budget for 2015. That total represents a 20% decli...

Patel appointed as LyondellBasell’s chief executive officer

12/18/2014 LyondellBasell has chosen Bhavesh V. Patel to serve as its chief executive officer effective Jan. 12, 2015. He succeeds James L. Gallogly, who...

MEG Energy cuts capital spending for 2015 to $305 million (Can.) from $1.2 billion

12/18/2014

MEG Energy Corp., Calgary, is reducing its 2015 capital spending plans to $305 million (Can.) from the original budget of $1.2 billion.

Cooper to buy 50% of offshore Gippsland Sole gas field

12/17/2014 Cooper Energy Ltd., Adelaide, has bought a 50% interest in the offshore Gippsland Sole dry gas field in retention lease Vic/RL3 as well as 50% of t...

Turkish refinery secures Canadian financing

12/16/2014 Export Development Canada (EDC) said it is participating as lead arranger in the $3.3 billion debt-financing consortium supporting STAR Rafineri AS...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


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