By OGJ editors
HOUSTON, Mar. 23 -- Arcan Resources Ltd., Calgary, has gauged a Devonian Slave Point gas-condensate discovery in the Chinchaga-Ladyfern area of northwestern Alberta.
The discovery is near Ladyfern field on the British Columbia-Alberta line 245 km northwest of Grand Prairie, Alta.
The Hamburg 13-29-095-12w6m well flowed on a limited atmospheric test at 19 MMcfd of gas at 1,246 psig flowing tubing pressure. Further tests into a pipeline are planned in April. TD is 2,649 m.
Arcan Resources operates the well with 50% working interest.
With successful perforation and completion, Alberta Oilsands Inc. (AOS), Calgary, earned a minimum 50% working interest in the well and in 7,040 acres in the area.
At least two other locations with similar 3D seismic character exist on the earned lands that can be drilled to expand the discovery, AOS said. The well is the first of a four to six-well 2009 exploration program.
Alberta's new well royalty reduction is expected to improve the attractive economics of the well. The paid royalty on the well will be capped at 5% for the first 12 months of production up to a maximum of 500 MMcf. The Alberta drilling credit is expected to improve risk adjusted returns, AOS said.
Arcan drilled another exploration well in the Hamburg area in early 2008 that continues to await completion because the funds required to justify tie-in aren't available. No reserves were attributed to this well in 2008 because it hasn't been tested or completed.
