Apache to pursue New Brunswick shale gas
Apache Canada Ltd. signed a farmout and option agreement with Corridor Resources Inc., Halifax, NS, to pursue gas in Frederick Brook shale in southern New Brunswick, Canada.
OGJ Chief Editor-Exploration
HOUSTON, Dec. 8 -- Apache Canada Ltd. signed a farmout and option agreement with Corridor Resources Inc., Halifax, NS, to pursue gas in Frederick Brook shale in southern New Brunswick, Canada.
The 18-month program of at least $25 million in spending is designed to evaluate the commercial potential of natural gas development in the Frederick Brook shale and light oil development at Corridor’s recent Caledonia oil discovery (OGJ, Dec. 7, 2009, Newsletter; OGJ Online, Mar. 27, 2009).
Apache committed to conduct an appraisal program consisting of any combination of seismic, drilling, fracturing, testing, and completing or abandoning one or more horizontal or vertical oil, gas, and shale gas wells. On completion of the program, Apache will have earned a 50% working interest in the spacing units drilled.
On completion of the appraisal program, by June 1, 2011, Apache will have the option to elect to conduct a further program of any combination of those activities and the construction of a 20-km gas pipeline from the Elgin area to Corridor’s gas plant at McCully field.
If Apache elects the latter option, it will also purchase at cost a 50% working interest in the Green Road G-41 well and spacing unit, and the purchase price will be part of the expenditure commitment for the option program.
This second, optional phase of activities is to be completed by Mar. 31, 2013, and requires an outlay of at least $100 million. Apache will be operator for all activities. On completion of the optional program, Apache would earn a 50% working interest in 116,000 net acres currently held 100% by Corridor.
Thereafter, Corridor would be a 50% paying participant in all further activities on the farmout lands.
Contact Alan Petzet at email@example.com.