Nexen developing Alberta Mannville coal gas

Nexen Inc., Calgary, has a $200 million budget in 2007 to develop 98 gross/41 net sections of Cretaceous Mannville coalbed methane in Alberta.

Jun 19th, 2007

By OGJ editors
HOUSTON, June 19 -- Nexen Inc., Calgary, has a $200 million budget in 2007 to develop 98 gross/41 net sections of Cretaceous Mannville coalbed methane in Alberta.

The company is drilling single and multileg horizontal wells in the Corbett, Doris, and Thunder areas near Fort Assiniboine.

The company estimated 3 tcf of gas in place on more than 700 net sections of CBM lands it holds in Alberta. Its production goal is to be producing at least 150 MMcfd by 2011.

CBM production is nearing 25 MMcfd and is projected at 50 MMcfd by yearend. Breakeven gas price for the CBM developments is $5 (Canadian)/Mcf, the company told the Canadian Association of Petroleum Producers.

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