By OGJ editors
HOUSTON, Oct. 10 -- Progress on several fronts may soon lead to the first drilling in Canada's Yukon in more than a decade.
Devon Energy Corp.'s Canadian unit is conducting geophysical surveys over Kotaneelee gas field, the territory's only hydrocarbon producing area. Canada Southern Petroleum Ltd., Calgary, retained consulting engineers to evaluate the field's existing developed reserves and provide a preliminary assessment of further development opportunities on the lease.
Kotaneelee, in the southeast corner of Yukon, yielded a combined 25.2 MMcfd of gas and 1,549 b/d of water from the I-48 and B-38 wells in August 2003 and has produced around 200 bcf since going on line in 1979.
Gas is declining. Water production is rising and will constrain gas production at some point, Canada Southern noted. Only 71 wells have been drilled in the Yukon, the last being a Kotaneelee development well in 1991.
Settlement of a multiyear lawsuit that involved gas marketing from the field and other matters took effect Oct. 3 (OGJ Online, Apr. 15, 2003). The settlement provides greater likelihood that further Kotaneelee development could occur, but it includes no understanding with or commitment by working interest owners to further develop.
Canada Southern is considering converting its 30.67% carried interest to a working interest.
Hunt Oil Co. of Canada last year paid $1.16 million to explore 155 sections with an area of about 40,200 ha in the Peel Plateau near 66° N. Lat., 134° W. Long. just south of the Arctic Circle (OGJ Online. Feb. 1, 2002).
The Yukon expects to see oil and gas rights issued in southeast Yukon in spring 2004, Premier Dennis Fentie said in late September.
