PanCanadian Petroleum encountered a huge amount of gas with itsthird Deep Panuke appraisal well, M-79A, drilled offshore NovaScotia. During a five-day test, the well flowed at an average rateof more than 63 MMcf/d despite limitations in the downholeconfiguration of the test string.

The M-79A well is located about 155 miles southeast of Halifax,NS, and about 1.9 miles east of the Panuke platform. PanCanadianholds a 100% working interest in the Deep Panuke field. The M-79Awell was drilled to a total depth of 15,105 feet, which wasfollowed by a horizontal sidetrack in the main reservoir section.The horizontal sidetrack encountered 360 feet of net pay. Thereservoir is currently estimated at about five miles in length.

“These very encouraging results from the third appraisal wellwill allow us to evaluate the overall potential of the Deep Panukefield,” said CEO David Tuer. “The test results are very promising,and further analysis will be conducted to determine the full extentof the field.”

This is the first new gas find offshore Nova Scotia since theSouth Sable field was discovered in 1989. The company expects tomake a decision on the commerciality of a stand-alone developmentof this field by the end of the first quarter of 2001. It did adetailed analysis of the results of this well and the threepreviously drilled wells, all of which flowed at more than 50MMcf/d during multi-day tests — the maximum capacity of thetesting equipment. The company has not released any reservesestimates.

A spokeswoman said PanCanadian would look at severaltransportation options, including shipment on the existingSable/Maritimes gas pipeline system, building a new pipeline systemor even converting the gas to power and sending it to shore aselectrons.

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