By OGJ editors
HOUSTON, Mar. 3 -- Geocan Energy Inc., Calgary, has approved a 2006 capital program that includes $30 million for the drilling of 34 gross wells (30.33 net), land acquisition, 3D and 2D seismic programs, and facilities projects.
It plans to spend $5 million in British Columbia, $17.5 million in west-central Alberta, and $7.5 million in the Lloydminster area of Alberta and Saskatchewan.
Plans include 10 exploratory and 24 development wells, most targeting natural gas and light oil. In 2005 Geocan drilled 23 wells, resulting in 9 gas wells and 11 oil wells.
The company hopes to produce 4,000-4,500 boe/d by the end of 2006. Production at the end of 2005 was 3,414 boe/d, up 70% from a year earlier.
In addition to $22 million allocated to drilling, Geocan's 2006 capital program includes $6.5 million for land acquisitions and seismic programs in core areas, which currently involve about 103,000 acres of net undeveloped land.
At North Tomahawk, in west-central Alberta, where Geocan last year made two gas discoveries in which it holds 100% interests, the company plans to spend $1.5 million on pipeline and facilities projects.
