By OGJ editors
HOUSTON, Apr. 28 -- Nexen Inc. plans to boost coalbed methane production to more than 30 MMcfd by the end of 2006 in central Alberta at the first commercial CBM project in water-saturated Lower Cretaceous Upper Mannville coals.
Ultimate goal is 150 MMcfd by 2011 from development of only about half of the company's CBM lands, compared with 4 MMcfd of present output.
Nexen is running eight rigs. It has completed two gas processing facilities and expects to complete two more in the third quarter, for a four-plant capacity of 94 MMcfd (38 MMcfd net to Nexen).
Nexen in 2005 approved commercial CBM developments at Corbett, Doris, and Thunder in the Fort Assiniboine area. It held more than 600 net sections of land with CBM potential in Alberta at yearend 2005.
The 2006 budget is $150 million to develop 115 gross (53 net) sections using single and multileg horizontal wells. Nexen spent $83 million in 2005 to begin the three commercial developments and build and evaluate the CBM acreage.
Mannville coals are generally deeper than the Upper Cretaceous Horseshoe Canyon dry coal play under commercial development in the province.
