Three Calgary companies have started a 2 year exploratory drilling program in Northeast British Columbia.
Bow Valley Industries Ltd. agreed in principle to explore the area with Canadian Hunter Exploration Ltd. and Esso Resources Canada Ltd. The companies expect to sign a formal agreement by Mar. 31.
Esso and Hunter have conducted joint geological and geophysical exploration in the area for 18 months.
Bow Valley committed to spend $20 million and could spend as much as $30 million for drilling during the 2 years to earn as much as a 20% working interest in more than 680,000 gross acres.
The acreage has oil and gas potential in the Cretaceous, Triassic, Mississippian, and Devonian.
The area is bounded by major accumulations such as Monias gas field (700 bcf of original reserves), Parkland gas field (235 bcf), Brassey oil field (25 million bbl), and Inga oil field (35 million bbl).
It is just north of giant Elmworth gas field (5.6 tcf).
Bow Valley termed the exploration opportunity "unique" because the acreage represents "a large available contiguous land position with considerable reserves potential in an area that fits geographically and geologically with Bow Valley's long term strategy and objectives."
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