A group led by Talisman Energy Inc., Calgary, has made the first commercial discovery to produce from the deeper, underexplored Paleozoic reservoirs in the Monkman area in the British Columbia foothills.
Talisman as operator said that the deeper play will cover a wide area and appears to contain well in excess of 1 tcf of unrisked, recoverable gas.
The discovery well, about 110 miles northeast of Prince George, was drilled to the Mississippian and tapped low-acid (6%) gas in reservoirs of Permian and Pennsylvanian age. It is to go on line in September at a rate well above 15 MMcfd, Talisman suggested.
One rig is under contract to start a delineation program in the fourth quarter, and a second likely will join it by yearend.
Talisman said it has mapped more than 30 potential locations, most on Talisman-operated acreage, and each with an estimated 20-40 bcf recoverable. The company holds 179 net sections of land (342 gross sections) in the area.
Talisman plans to make small acquisitions in support of its western Canada operations, including Monkman, by the end of the year.
Interests in the discovery well are Talisman 40%, Anadarko Canada Corp. 30%, National Fuel Exploration Corp. 20%, and Oiltec Resources Ltd. 10%.
Discovery well
The West Sukunka b-79-J/93-P4 discovery well went to 4,801 m measured depth and flowed at rates of 15-37 MMcfd directly into existing Monkman pipeline infrastructure.
The find "opens up a major potential new play system," Talisman said.
The play type is similar to that of the Triassic that Talisman has exploited in the same area for more than 40 years.
The first well has dominantly matrix porosity and is on the back-limb of the structure. These structures are more like Alberta structures than Monkman Triassic structures which roll over, managers said. Talisman will drill closer to the toe of the thrust and expects fracture porosity there.
Wells cost $12-15 million (Canadian), but the finding cost at that price is still attractive at about 50¢/Mcf. Talisman believes well costs will decline with experience.
With two rigs it should be possible to drill a total of four wells per year.
Production and transportation infrastructure is ample in the area, but a limitation is likely at Duke Energy Field Services Inc. Pine River gas treatment plant in c-85-d/93-p12 where sulfur will be removed from the gas, Talisman said. The discovery well's flowing wellhead pressure of 2,500 psi is double pipeline pressure in the area.
Wider gas play
Talisman said it held the well data confidential until after the July 17, 2002, BC crown land sale, where the company and its partners picked up 18,236 acres of land on trend with b-79-J for $12 million.
Talisman also holds a 95% working interest in 32,061 acres of deep rights on two large blocks along trend to the northwest. The company's partners have the option to join it on that acreage.
Oiltec said the four participants have executed a 485,000-acre area of mutual interest in which the group has the right to participate in all land acquisitions and drilling opportunities that may be proposed on behalf of the group that pertain to oil and gas rights below the Triassic Pardonet-Baldonnel formations.
Talisman's net production exceeds 90 MMcfd of gas from the shallower Triassic play in the Monkman area. It has immediate access to significant landholdings, existing infrastructure, and extensive seismic data.
Industry has pursued the deeper Permian-Mississippian targets sporadically (OGJ, Aug. 8, 1994, p. 72). This culminated with a Permian discovery in the Ojay area southeast of Monkman in 1998.
