PanCanadian Makes Scotian Shelf Discovery
PanCanadian Petroleum Ltd. made a potentially sizable gas
discovery offshore Nova Scotia about 25 miles from Sable Island. In
the past year, the company has drilled two exploration wells into
geological zones under the Panuke oil field, about 155 miles
southeast of Halifax. During testing, each well flowed at more than
50 MMcf/d, the maximum capacity of the testing equipment. The
wells, PP-3C and PI-1B, intersected net pay of more than 230 feet
and 100 feet, respectively.
"This is potentially a very significant natural gas discovery in
a region that is quickly emerging as a substantial petroleum
province in Canada," said David Tuer, PanCanadian president. "We
are very excited by these strong natural gas tests which signal the
potential emergence of another East Coast natural gas project."
Calgary-based PanCanadian said it will continue evaluation to
determine reserve size and commercial potential with the drilling
of at least two Scotian Shelf wells this year. PanCanadian holds a
100% working interest in the discovery.
Spokesman Alan Boras said eventually gas supplies could flow on
the Maritimes and Northeast Pipeline. "We haven't got a reserve
estimate on this. We haven't got to the question of commercial
potential, commercial viability yet, But Maritimes and Northeast is
there. It's a common carrier. It would make sense that ultimately
that's where this gas would go. We've got a ways to go on the
"We're certainly encouraged by it. This is a successful step
along the way of a longer-term strategy to look at and build a
strong position on the East Coast of Canada."
PanCanadian's total land position offshore Nova Scotia is 15
blocks, covering more than four million gross acres. PanCanadian
holds almost 2.5 million net acres on the Nova Scotia blocks. The
company is the leading operator of exploration lands on the Scotian
Shelf and adjacent deep waters.
To manage the future exploitation of PanCanadian's exploration
efforts, Larry LeBlanc has been appointed vice president of East
Coast operations. He has been with PanCanadian for 15 years, most
recently as general manager of the East Coast business unit.
Joe Fisher, Houston
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