OIL, GAS REINJECTION DUE AT ALBERTA DELINEATION
Husky Oil Ltd., Calgary, plans to spend about $25 million (Canadian) to delineate a controversial oil discovery in the Kananaskis area about 31 miles west of Calgary.
Husky said its Moose Mountain well flowed light oil at the rate of 800 b/d on an initial test. Reports last spring said Husky and partner Rigel Energy Corp., Calgary, had gauged a 5,000 b/d producing well (OGJ, July 5, Newsletter).
The oil is rated at 36-38 gravity. The discovery well was drilled to 9,842 ft and encountered a 233 ft pay zone and a 62 ft pay zone. The 233 ft zone is in the Mississippian Turner Valley formation. The other zone, the shallower Mississippian Mount Head formation, appears to have oil potential.
Husky applied to the Alberta Energy Resources Conservation Board to drill five more wells in the area, prepare two more drilling pads this winter, and build three miles of road. The company wants to drill two wells from each of three drill pads.
Directional wells will be drilled for the tests. Oil and gas will be produced from one well and reinjected through the other at each pad, enabling Husky to avoid trucking crude or flaring sour gas in the environmentally sensitive area.
Husky has outlined its plans to the government and environmental groups. Rocky Mountain Ecosystem Coalition, an environmental group, opposes Husky's delineation program without a full environmental impact statement, which could take a year.
Husky has said it plans a full assessment if the delineation program justifies development in what is a prime recreational locale. The ERCB has not ruled on whether a hearing is necessary on the delineation plan.
Husky has a 66 2/3% working interest in the program and Rigel has 33 1/3%.
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