By the OGJ Online Staff
HOUSTON, Nov. 6 -- PanCanadian Energy Corp. and MGV Energy Inc. have agreed to expand their coalbed methane joint venture to explore outside the Palliser Block in southern Alberta.
The companies have increased their capital program for the project to $30 million (Can.) from $15 million.
PanCanadian declined to state what other blocks are involved in the expansion, but said they are PanCanadian-owned blocks "mostly in southern Alberta."
PanCanadian and MGV Energy, the Canadian subsidiary of Quicksilver Resources Inc., Fort Worth, formed the venture in late 2000 to explore the 1-million acre Palliser Block.
So far, the two companies have drilled 23 of 25 planned exploration wells on the block and expect to drill the other two by yearend (OGJ Online, July 18, 2001). So far, they have drilled 24 of a planned 75 pilot wells, intended to delineate and define the reservoir continuity of the exploration wells. The remaining pilot wells will be drilled by the end of the first quarter.
In the expansion area, the companies will drill 25 exploration wells -- 12 by the end of the first quarter.
Mike Gatens, chairman and CEO of MGV Energy, said, "Our drilling in the Palliser block is the largest CBM exploration and pilot in Canadian history. The encouraging exploration results there have prompted us to accelerate our schedule and expand our exploration activity to other areas of Alberta."