PanCanadian confirms major gas find off Nova Scotia

PanCanadian Petroleum Ltd., Calgary, has drilled its second successful appraisal well in the Deep Panuke natural gas discovery area off Nova Scotia. During a 3-day test, H-08 flowed at an average rate of more than 50 MMcfd of gas, the maximum capacity of the testing equipment, said the firm.


PanCanadian Petroleum Ltd., Calgary, has drilled its second successful appraisal well in the Deep Panuke natural gas discovery area off Nova Scotia. During a three-day test, H-08 well flowed at an average rate of more than 50 MMcfd of gas, the maximum capacity of the testing equipment, said the firm.

"This second appraisal well indicates the Deep Panuke gas field is the most significant discovery in Atlantic Canada in more than a decade," claimed Gerald Macey, PanCanadian's executive vice-president of exploration. "Deep Panuke is emerging as a world-class play, and its proximity to markets and pipelines offers PanCanadian the potential to substantially increase reserves and production."

PanCanadian spudded H-08 May 24. The total depth of the well was not released, but the firm said the well encountered net pay of 325 ft and proved a gas column in the pool of at least 450 ft. The reservoir is currently estimated at 6-8 km in length, said the company.

The H-08 well was drilled about 2 km southwest of the discovery well, PP-3C, which cut 225 ft of net pay. The first appraisal well, PI-1B, encountered net pay of 110 ft.

PanCanadian announced in February that each of the first two wells flowed during multiday tests at more than 50 MMcfd�again the maximum capacity of the testing equipment.

PanCanadian is drilling a third appraisal well, M-79, into Deep Panuke. Results will be available sometime in September, says PanCanadian. At that time, the firm will evaluate the reserve size, commercial potential, and development options for the field.

Production from Deep Panuke could be on-stream by late 2003, says the Canadian operator. The firm will begin drilling another exploratory test into a separate structure on the Panuke licence in the third quarter.

PanCanadian holds 100% working interest in Deep Panuke, which is located 250 km southeast of Halifax, NS, on the Scotian Shelf.

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