By OGJ editors
HOUSTON, Jan. 21 -- ARC Energy Trust, Calgary, said it has identified a resource greater than 1 tcf of gas with two 100% owned discoveries known as West Dawson and Sunrise just west of Dawson Creek, BC.
Not included in the estimate is a further 13,000 acres of 100% interest land acquired in late 2007 in the West Tupper area southwest of Dawson Creek and just west of Swan Lake gas field. All of the lands are considered highly prospective for gas in the Triassic Montney formation, ARC Energy said.
The company nearly doubled its 2008 capital budget to $85 million for the Montney resource play, where it plans to shoot 3D seismic and drill multiple vertical and horizontal lands this year. It will drill the first exploratory well on the West Tupper block.
ARC Energy entered the area by acquiring Star Oil & Gas in April 2003 and has built production to 44 MMcfd in December 2007 after start-up of the Spectra West Doe gas plant on Dec. 12. Its best horizontal Montney wells have tested more than 10 MMcfd.
The West Dawson 4-12-79-16w6 discovery well cut more than 75 m of greater than 3% porosity gas-bearing rock in the Montney and tested multiple intervals of commercial volumes of gas. It is a major extension of ARC's Montney exposure at Dawson.
The Sunrise 9-13-78-18w6 discovery well, while not tested yet, cut 150 m of greater than 3% porosity gas-bearing rock in Montney. The formation is deeper and much thicker at Sunrise and therefore could contain more gas in place per section than at Dawson, ARC Energy said.
The company spent $100 million since August 2006 to acquire 44,000 net acres of land in the Dawson Creek area, bringing its total holding to 90,000 net acres. This includes 57,000 undeveloped acres the company believes highly prospective for Montney gas.
