Talisman Energy Inc. and Purcell Energy Ltd., both of Calgary, yesterday announced plans for a joint exploration venture in the greater Fort Liard region in the southwest of Northwest Territories and the southeastern Yukon. Talisman will hold a 60% interest in the venture, with Purcell owning the remaining 40%. Preliminary work will commence immediately, focusing on deep natural gas prospects.
The venture represents Talisman's first "significant" move into Northwest Territories, said Jim Buckee, president and CEO. With the major remaining hydrcarbon potential in Canada lying in the medium and deeper gas plays in Alberta, British Columbia, and the territories, Talisman is well positioned as one of the leading deep gas players in North America, Buckee said.
Talisman's success with drilling foothill prospects, combined with Purcell's longstanding involvement at Fort Liard, will enable the partners to capitalize on emerging opportunities, said Purcell COO and Director Bruce Murray. Purcell yesterday reported that natural gas had started flowing from its K-29 well, drilled on a block about 25 miles from Fort Liard southern half of Northwest Territories, close to its border with British Columbia, Murray said.
Chevron Corp., which holds a 43% interest, drilled the K-29 well and a second well, the M-25, a few miles south of K-29. Both wells are capable of production rates approaching 75 MMcfd, says Chevron. Production from K-29 will be ramped up from its current level of 35 MMcfd to 75 MMcfd over the next 10 days, Purcell said on May 1. The M-25 well is expected to begin production in November and will be tied into the K-29 pipeline system.
Purcell holds a 25% interest in the wells, and Berkley Petroleum Corp. holds 21%. The remaining stakes are held by several companies, including Ranger Oil Ltd., Anderson Exploration Ltd., and Canadian Natural Resources Ltd., all based in Canada.