Independents build gas potential in Canada's Northwest Territories
Large gas volumes appear to have been found in the Colville Lake area of the Northwest Territories about 100 miles northeast of Norman Wells.
Paramount Resources Ltd., Calgary, and Apache Canada Ltd. said consulting engineers assigned 250 bcf of possible raw gas reserves based on a 6,800-ha area covered by the Nogha C-49 and M-17 wells.
The estimate was based on analysis of the flow and buildup data from the first two wells on the Nogha structure, just north of the Arctic Circle and 1,150 miles north of Calgary.
Additional information from the B-23 well suggests a potential upside to the estimate, the companies said.
Paramount and Apache plan to further delineate the reservoir at Nogha this winter and prove up more reserves.
The two companies, each with 50% interest, hold 721,497 acres near Colville Lake (Fig. 1). The land position includes a 10-year concession agreement with local aboriginal people and the EL 399, EL 414, and EL 427 federal exploration licenses. Paramount holds 100% working interest in 80,608 ha in EL 424.
Paramount's board recently authorized management to examine restructuring alternatives to increase shareholder value (OGJ Online, Oct. 1, 2004).
Exploration results
The three wells drilled on the Nogha prospect reached total depth in Proterozoic basalt at 1,400-1,500 m.
Apache Paramount Nogha C-49 and Paramount Apache Nogha M-17 were cased, completed, and flow-tested as successful sweet gas wells in the Cambrian Mount Clark formation and are shut-in (Fig. 2). Post stimulation flows were 3-5 MMcfd.
Apache Paramount Nogha B-23, the pool's third well, downstructure and 10 km south of the first two wells, was cased and completed but not flow tested due to spring breakup. The companies plan to test it this winter.
They also plan to add exploratory wells this winter targeting Basal Cambrian on EL 414 at Turton Lake about 35 miles northeast of Norman Wells and on El 399 at Lac Maunoir about 135 miles northeast of Norman Wells.
The Lake Maunoir location will follow Lac Maunoir C-34, which the companies drilled, cased, and tested in 2003. Well results were positive but are confidential at present.
Paramount and Apache drilled and cased the West Nogha K-14 exploratory well last winter on a separate structure on aboriginal lands. It is to be tested this winter.
The companies are investigating gas marketing scenarios. The Colville Lake properties are near the proposed Mackenzie Valley gas pipeline.
Fort Liard progress
Meanwhile, Paramount and partners reported drilling and production progress in the Fort Laird area in NWT near the boundary with Yukon, where they are exploiting gas in the Devonian Nahanni formation.
The Laird 2M-25 well flowed 25 MMcfd of raw gas on a 5-day flow test with less than 11% drawdown. Tubing and the maximum operating pressures of the test equipment restricted the flow rate.
Work was to start in September on Liard M-25, shut-in since January 2004. A successful workover of the M-25 and 2M-25 wells together with an upgrade to the common facilities was to bring both wells back on in early October with added gross production of approximately 35 MMcfd to the current field production.
Paramount was reviewing additional wells in the field for potential work- over to maximize field production and employing 3D seismic data to identify additional drilling locations in the field.
Paramount is operator with 46.19% working interest. Other participants are Purcell Energy Ltd., Anadarko Canada Ltd., Devon Canada Ltd., Canadian Natural Resources Ltd., EnCana Oil & Gas Partnership, and Talisman Energy Canada.