By OGJ editors
HOUSTON, Nov. 13 -- Talisman Energy Inc. reported on plans to drill eight additional wells in 2007 in the west-central Alberta Ram area—an emerging exploration play southwest of the company's central Alberta Foothills structural play.
The company reported that this new area's initial discovery well, 12-20-38-13W5, tested gas from three zones at a combined rate of 17 MMcfd of gross raw gas. Follow-up drilling resulted in three successful wells that have potential in one or more zones and have, in aggregate, tested at more than 20 MMcfd gross raw gas.
"The discovery of potentially commercial gas in the Cambrian section represents a first in Alberta," said Talisman Pres. and Chief Executive Officer Jim Buckee.
The majority of the area's prospective gas zones are relatively shallow (less than 2,000 m) with multizone potential and a hydrogen sulfide content of less than 1%.
Talisman has a 100% working interest in more than 48,000 acres (76 sections) in the area. It said that although still early in the exploration stage, contingent and prospective gas resources on its Ram acreage are estimated at 200-300 bcf.
The company plans to spend about $100 million on equipment, infrastructure, and drilling in the area next year. Engineering work has begun on the infrastructure required to bring this gas to market, with construction expected to begin in late 2006.
Production is expected in third quarter 2007, with potential exit rates of 30-50 MMcfd (net sales).
