By OGJ editors
HOUSTON, Sept. 17 -- AltaCanada Energy Corp. unit Montana Land & Exploration Inc. (ML&E), Calgary, has begun a $2.4 million development program in its Cherry Patch play in Montana where 70 drilling locations have been identified.
Development includes constructing an 18 mile, 6-in. natural gas gathering system by Oct.1, 2005, and drilling 15-25 wells in November and December. ML&E also will participate in 5-10 nonoperated wells on adjacent areas, and will drill 5 wells in Canada during the third quarter.
The pipelines will connect to an existing 10 mile lateral to tie in at Battle Creek, Mont. to existing compression and the Chinook export pipeline, which has 12.5 MMcfd of capacity still available.
During ML&E's 16-well Spring drilling program, 15 wells encountered Eagle formation gas in commercial quantities at 1,200-1,780 ft. First Montana production came on stream July 23.
