By OGJ editors
HOUSTON, Apr. 5 -- Corridor Resources Inc., Halifax, NS, plans to expand production in McCully natural gas field in New Brunswick, move toward a connection with the Maritimes & Northeast Pipeline, collect more 3D seismic data, and explore a deeper formation and areas adjacent to the field.
Corridor Resources said it has identified potentially large shale gas developments on its lands near McCully and along the route of a 49-km, 8-in. pipeline to connect the field to M&NE (OGJ Online, Feb. 8, 2006).
It has also identified gas and oil exploration targets, some of which have structural and trapping characteristics similar to McCully, in the Millstream subbasin north of McCully.
McCully, in the Moncton subbasin, has been delivering gas to a potash mill near Sussex, NB, for 3 years from two wells. The company estimated gas in place in the field at more than 1 tcf.
Corridor Resources plans to ready 14 other wells in the field, remote from service and supply infrastructure, for successive frac jobs in the fall of 2006.
The plan is to connect the field to M&NE by yearend and begin delivering 25 MMcfd from ten wells.
The company plans to drill, frac, and complete another 16 wells between fall 2006 and spring 2008, to boost deliveries to M&NE to 35 MMcfd. The plans assume the continuity of the productive Hiram Brook formation sand package, at a depth of 2,500 m, across the structure.
Longer term, the field might be capable of producing 80-90 MMcfd in 2009-10, which would require expansions of gathering lines and a gas conditioning plant.
Corridor Resources plans to drill a 3,500-m well this fall through the Fredericks Brook shale to evaluate underlying Dawson Settlement sands.
"Seismic and outcrop data suggest the structure at the Dawson Settlement level has the potential to trap and contain several trillion cubic feet of natural gas in place," the company said. Forward development plans would be altered significantly if the Dawson Settlement sands are commercial.
All of the named zones are members of the Albert formation of the Mississippian Horton Group.
The 3D survey planned in spring and summer 2006 is to help in locating possibly more than 50 new production well locations on the McCully structure based on 110-acre spacing beyond the current development phase's 30 wells.
Corridor Resources is evaluating several proposals regarding the financing, construction, ownership, and operation of the required McCully facilities, which are expected to cost $42 million. Potash Corp. of Saskatchewan, on whose land McCully field was discovered, is considering whether to participate.