The GRI’s latest report indicates producers won’t run out ofwork anytime soon in the Western Canadian Sedimentary Basin (WCSB),which is estimated to have 166 Tcf in new pool potential and a 31.4Tcf reserve appreciation potential. Because of these positiveestimates, the GRI said the region could surpass 8 Tcf ofproduction by 2015.

More than 50% of the new pool assessment comes from theFoothills region of the WCSB. The GRI estimates 85 Tcf of new gaspotential in the play. Included in this region is the Ft. Liardarea, which the GRI calls “one of the most exciting developments inCanada in recent years.” Estimated totals of undiscovered gas inFt. Liard are 19 Tcf. “The Ft. Liard area appears poised for amajor expansion in activity and gas production,” the GRI said inthe study. “It is anticipated that gas transportation capacity fromthis region will increase rapidly.”

And there is more to come. Development of the play will mostlikely move north, the GRI said, toward the Beaufort/MackenzieDelta, which has undiscovered resources between 53 and 55 Tcf.

While Chevron and others develop the Ft. Liard play (see Daily GPI,May 17), the GRI also said that TalismanEnergy has proven successful in other parts of the AlbertaFoothills. The company participated in eight horizontal wells inAlberta’s Mississippian Turner Valley formation and reported a 100%success rate. Each well has been tested at an average of 14 MMcf/d.

New plays are also expected to emerge with deeper explorationactivity. Currently, most of the completion activity takes place inthe 0-5,000 foot interval, the GRI said. “This activity is addingto the deliverability but it is uncertain how much of thisrepresents new gas reserves..the industry must move moreaggressively into the deeper parts of the basin.” There is a largeuntapped strata volume below 10,000 feet, the association added.

Besides the Foothills area, the report also covers the WillistonBasin, central and southeastern Alberta and the British Columbiaplains. While Alberta rates high in both new pool and reserveappreciation potential, the central and western portion of BC isthe one area in the WCSB where it is not thought significant oil orgas potential exists.

Interestingly, the association’s report on the WCSB in 1999 waseven more aggressive. The most recent report’s sum of discoveredand undiscovered gas for the WCSB is 50 Tcf lower than the previousone. Still, the GRI points out that its study is still much morebullish on production than other studies done by the NationalPetroleum Council, the National Energy Board and the Canadian GasCommittee. For a copy of the report, call (703) 526-7832 or send anemail to baseline@gri.org.

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