Encana lowers 2014 cost for wells in Duvernay

Encana Corp.’s Duvernay team continued to reduce drilling and completion costs in 2014, achieving an average cost of $12.4 million per well on a 4-4 pad, which is 17% lower than the 2014 target of $15 million and 50% lower than the 2013 average.

In the Duvernay, Encana drilled 24 net wells last year. The company plans to run two to three rigs in 2015 and drill around 15 net wells.

Encana expects a net investment of $230 million. An additional $660 million of joint venture capital is expected to be invested in the play, representing a gross investment of $890 million.

Pembina to expand BC system for Montney

Pembina Pipeline Corp. has entered into binding agreements to proceed with a $210-million expansion to Pembina’s pipeline system in northeast British Columbia. The NEBC expansion will transport condensate and NGLs for producers in the liquids-rich Montney shale.

Construction of a 160-km, 12-in. pipeline with a base capacity of 75,000 b/d will parallel the company’s Blueberry pipeline system northwest of Taylor, BC, to the Highway-Blair Creek area of British Columbia.

Pembina anticipates bringing the NEBC Expansion on stream sometime during 2017.

"Pembina has been actively engaging with producers regarding the development of the Montney play," said Jason Wiun, Pembina vice-president, conventional pipelines, adding the expansion will provide access to Pembina’s existing system at Taylor, BC, which feeds into Edmonton, Alta.

Aux Sable Canada signs Duvernay rich gas deals

Aux Sable Canada LP of Calgary signed rich-gas premium (RGP) agreements with Encana Corp. and Brion Duvernay Gas Partnership for long-term takeaway capacity from the Duvernay play.

These agreements provide for up to 180 MMcfd of additional rich gas supplies from the Duvernay for connection to a receipt zone in Alberta, starting in November 2017 and continuing through to 2020.

In March 2014, Aux Sable announced RGP agreements with Encana and Brion to provide for up to 195 MMcfd of rich gas from the same area, starting in July 2014 and continuing through to 2020.