New Brunswick: Corridor locks in high gas sales netbacks

Corridor Resources Inc., Halifax, NS, operator of McCully gas field in New Brunswick, said it has entered into a forward sale agreement from Nov. 1, 2013, to Mar. 31, 2014, for an average of 3,000 MMbtu/day equating to 2.8 MMscfd of gas at an average of $9.03/MMbtu (US) and an estimated netback of $6.50/Mscf (Can.).

The agreement covers one third of Corridor’s estimated production for the period. Corridor’s remaining production will be sold at daily market prices that it expects to be strong during the period due to the high basis differential in the New England markets.

Phillip Knoll, Corridor president and chief executive officer, said, “The premiums we anticipate going forward in the New England market provide us with confidence that the contemplated 2014 drilling plans will provide Corridor increased cash flows in 2014 and 2015 and also increases the economic potential for our Frederick Brook shale play.”

The 2014 drilling program is subject to the availability of equipment, regulatory approvals, and confirmation of a competitive royalty regime, he noted.

Related Articles

OTC: Pemex preparing for cultural transition as Mexico reforms energy laws

05/06/2014 Mexico’s Petroleos Mexicanos (Pemex) is preparing for a major cultural transition while the country’s government moves to implement energy reforms ...

OTC: Nova Scotia seeks bids in active eastern Canada offshore

05/06/2014 Exploration and development remain brisk offshore eastern Canada, provincial officials reported May 6 at the Offshore Technology Conference in Hous...

Falcon farms out portion of Beetaloo basin permits

05/06/2014 Falcon Oil & Gas Ltd., Dublin, has farmed out a portion of its exploration permits in the Beetaloo basin onshore Northern Territory to South Af...

OTC: Ocean-bottom seismic improves resolution for offshore subsurface

05/05/2014 Streamer technology is not new, however, it has gone through many advances within the last 30 years. In 1980, 120 channels were considered advanced...

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