Canada: Shell discovers gas in Alberta

Shell Canada has announced a natural gas discovery on a previously untested structure located 30 km SW of Rocky Mountain House in central Alberta. An exploration well, Shell Tay River RicinusW 2-6-37-10-W5, was drilled on a previously untested Leduc reef feature analogous to the nearby Ricinus West field. The well was drilled to a depth of 5100 metres and encountered approximately 140 metres of net pay. Test data indicates that the well will be capable of a restricted flow rate of 30 million cubic feet per day through existing 3.5 inch tubing. Based on seismic evaluation, pressure and well data, Shell estimates that this new feature could contain in the range of 500 to 800 billion cubic feet of original raw gas in place. The raw gas contains approximately 60% methane and 35% hydrogen sulphide. Additional drilling and production information will be required to confirm the amount of gas in place and recovery factors. The discovery well is in the vicinity of existing sour gas processing facilities with capacity to handle incremental volumes, and is expected to be tied-in and producing by mid-2005. Further delineation drilling is also planned during 2005.

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