By an OGJ Online Correspondent
CALGARY, Feb. 21�Alberta Energy Co. Ltd. said Wednesday it has made a gas discovery in the Ladyfern area of northeastern British Columbia.
It estimates the well, drilled 9,235 ft into a Slave Point dolomitic reef, could produce 60 MMcfd. A second well will be production tested later this week.
AEC had four rigs operating in the area and planned to drill more wells this winter to appraise and develop the discovery. Production is due on stream by July.
Randy Eresman, president of AEC Oil & Gas, said, "This gas find is in a region that is home to world-class wells and high impact reserve additions. It looks a lot like the nearby Hamburg-Slave Point 'A' gas pool, which has produced 330 bcf since its discovery in 1983."
AEC has 100% of the discovery, 100 km northeast of Fort St. John, and more than 33,000 acres in the area.
The discovery offsets a find announced by Murphy Oil Co. Ltd. and Apache Canada Ltd. (OGJ Online, Feb. 7).
AEC plans to invest $60 million this year to drill 9 wells (8.5 net), and build a gas treatment facility, 10 km of gathering pipelines, and a 12-km line to deliver the gas to the Alberta network.