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Companies Involved in Drilling the
Horn River Shale - Horn River Shale Stocks
- Encana ECA - Encana (ECA) provides Horn River Shale Update - At our Greater
Sierra key resource play, production was up 16% over the third quarter of last year, led by increased production from the
Horn River where production more than tripled
from the same period last year. We completed stimulation operations on the north half of the d-1-D pad. By the end of the
quarter, 3 of the 7 wells had flowed at test rates within our expectations or about 15 million cubic feet equivalent per day
per well. The remaining 4 wells have been undergoing cleanup and are flowing through test equipment. Work is currently progressing
to have the first set of wells through permanent facilities by late October and the second set of wells to follow approximately
10 days later. In July, as part of our plans to attract third-party
capital investment in our undeveloped assets, we expanded our Horn River farm-out agreement with KOGAS, which will see them invest an additional CAD $185 million in approximately
20,000 additional acres in the Kiwigana area. We are very pleased with the expansion of our original CAD $565 million farm-out
agreement with KOGAS, which has allowed us to accelerate our drilling program both at Kiwigana and in the West Cutbank area.
- Apache APA - Apache and Encana take lead in the new and hottest shale play ( Horn River Basin Shale ) so far this year. APA
has 425,000 acres of leasehold. In the Horn River, the quality of the rock and the development efficiencies certainly
differentiates it. We can achieve those through large drilling pads on continuous ground acreage. In addition, as we progress
our Kitimat LNG project, our goal is to give Horn River access to international LNG markets. Our Horn River activity continues
to dominate Canadian operations with horizontal wells were drilled in the two island of late developed area during the quarter
with four of the Apache operated 52 pan and three on enhanced and can operated 63 tape. In addition come Apache drilled through
horizontal Wells in our ability area to hold expiring acreage. Drilling efficiencies that result in cost performance continued
to improve with average drill times now at 19 days from the spud rig release and average drill cost at $3.7 million per well
for about 7,200-foot of horizontal section 2011 Update - Third quarter
Horn River production increased by 18%, as compared to the second quarter that averaged 98 million cubic feet of gas per day
net to Apache's working interest, with peak leaping into production approximately 122 million cubic feet of gas per day. Third
quarter production levels don't reflect the benefit of our activity in liquid-driven plays yet. And a significant volume of
the wells we have drilled that are put in Canada year-to-date are still low on production.
- Exxon Mobile XOM - In Canada, the Horn River Basin is a world-class Devonian shale gas resource that
is currently in the evaluation stage. We hold over 300,000 net acres and are one of the largest net acreage holders in the
basin. 2011 Update - In Canada, we added approximately 18,000 net acres adjacent to our core area at Horn River.
As you know, Horn River is a key focus area in our global unconventional portfolio, in particular in
North America. We do have continued active drilling underway in our wells. We're testing those, both our wells as well as
wells we have in a joint venture. I'll tell you those wells are performing well and they successfully verified the presence
of multiple productive reservoir areas on our lease holds. Without giving totals, we're seeing average test rates of anywhere
from a 0.5 to 1.5 million cubic feet a day from a single frak, so we're happy with that. In terms of your question on CO2
and H2S, I'll tell you while we're continuing our evaluation on that, I really don't have any information and couldn't comment
on that specific question.
- Quicksilver Resources KWK - Quicksilver KWK has a nice acreage position in the Horn River Basin Shale - Quicksilver Resources is actively
exploring in the Horn River Basin of northeast British Columbia, where it has leased 130,000 net acres. 2009 Update: Quicksilver finished exploratory drilling activities on two horizontal wells as well as road and pipeline construction
in the Horn River Basin of northeast British Columbia. The company expects to conduct completion activities on these wells
following the spring break-up period.
- Devon Energy DVN - Devon DVN has taken a nice drilling stake in the Horn River Shale Natural Gas Field - Also in Canada
in the second quarter, Devon increased its lease position in the Horn River Shale play in British Columbia to more than 100,000
net acres. The company is now planning its upcoming winter drilling program for the Horn River area.
- EOG Resources EOG - ( From Seeking Alpha ) In the British Columbia Horn
River Basin, we intend to continue a steady
program and drill seven horizontal wells compared to six last year. We now have six months of sustained production from several
of our wells and are encouraged that this program will likely be competitive with other North American shale plays.
We're
also encouraged that the BC government is considering royalty incentives to help offset the challenge of the remote location
and associated costs and make the play more competitive with other North American gas plays. We have 157,500 net acres in
the play and it's worthwhile noting that EOG's current activity is on the west side of the play there is access to a separate
gas pipeline infrastructure with current adequate capacity for a near-term forecasted volume growth. The pipeline will be
expanded in the future to meet increases in drilling activity. We currently believe that takeaway infrastructure for
the overall field won't happen until early 2012. But given our current access to takeaway capacity we expect to be able to
slowly ramp up production each year so our Horn
River production growth profile will be steady
year-by-year rather than a hockey stick slope. 2010 Update: In the Horn River Basin, EOG will operate an active drilling program in the first half of the year, with the goal
of completing and turning wells to sales during the second half of 2010. - Nexen NXY - Nexen NXY is very active in the Horn River Shale Basin Play. Northeast British Columbia - Our shale gas strategy is progressing as planned and
production from the eight-well pad at Horn River brought on-stream late last year continues to meet expectations. Horn River
production averaged approximately 40 million cubic feet (mmcf/d) during the quarter. Plans to increase production at Horn
River later this year continued to progress with our successful drilling program on the nine-well pad, where we once again
set industry benchmarks for drilling days per well, including one well drilled in a record 14 days. We also began fracing
and completion activities on the wells during the quarter. Production from this nine-well pad is expected on-stream in the
fourth quarter but will be limited to our existing facility capacity of about 50 mmcf/d. This capacity increases to 175 mmcf/d
in late 2012 to coincide with the start-up of production from our 18-well pad. We commenced drilling this pad in late June
and production is expected to come on-stream in the fourth quarter of 2012. Additional facility capacity is planned to be
added as our production increases. Our process to seek a joint venture partner to accelerate value realization for a portion
of our shale gas asset is proceeding on schedule with numerous parties accessing the data room.
Imperial Oil IMO - Imperial is planning to drill a horizontal multi-well pad pilot
development to evaluate longer-term well productivity this winter season. The company also added an additional 11,000 acres,
bringing its joint venture holdings to 321,000 net acres – one of industry’s largest acreage positions in the
area..
- Park Place Energy PRPL - Park Place is looking to get into the Horn
River Basin Play - Park Place is also actively seeking to acquire a blue-sky opportunity and has focused on shale gas
properties in the Horn River Basin and area, which is within the Company's
defined core area for development in North East British Columbia. The Horn River Basin
has been described as significantly larger than the Barnett shale area in Texas which was first drilled in 1981 and currently produces 3 billion cubic feet per day. Wood Mackenzie stated in a
recent report that they predict the Horn River Basin area could hold 50 trillion
cubic feet of natural gas making it the hottest resource play in North America. . Nabors Industries NBR - Nabors NBR builds and supplies drilling rigs to companies in the Horn River Shale. We
have several rigs committed to these areas, including a heli-portable rig that's
going to go in the Horn River and the big advantage of that is number one, it's our acreage so we can show how we can drill
but also, it's going to be on a pad. .
Quiksilver Resources KWK - Horn River Basin - In the Horn River Basin of northeast British Columbia, Quicksilver's C-29-D well produced at initial
rates of approximately 14.4 MMcf per day of natural gas through a 50/64-inch choke and has averaged more than 12 MMcf per
day during the first 22 days of production. The well tested a 4,600-foot lateral section of the Muskwa formation and included
14 stages of fracture stimulation. This is the company's third completion in the basin and the most productive to date. The
company's three producible wells in the Horn River are currently capable of producing more than 15 MMcf per day. The company
sells this production through a permanent sales line that connects to the Spectra pipeline to Fort Nelson. The company expects
to begin completion activities on a fourth well in the basin by year end. The company has also recently spudded a horizontal
well to test the Exshaw formation, encountered at a vertical depth of approximately 4,350 feet, for commercial oil.
Quicksilver holds 100% working interests in 20 exploratory licenses covering a total of approximately 130,000
gross contiguous acres in the Horn River Basin. Drilling activities to date have already validated eight licenses totaling
nearly 50,000 acres. The company expects to validate the remaining exploratory licenses during the next two winter drilling
seasons.
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