Vancouver, BC-based TransAmerican Energy Inc. said Monday it plans to acquire a 100% interest in 10 Utica shale oil and gas properties on 136,000 acres in Quebec.
Subject to due diligence, TransAmerican said it will acquire a 100% interest in the Lacasse Property for $225,000 cash. According to TransAmerican, Questerre Energy Corp. has said the entire Quebec Utica Shale region could hold up to 20 Tcf of gas with initial well production rates of up to 12 MMcf/d. From 2006 through 2009 24 wells, both vertical and horizontal, were drilled to test the Utica. Positive gas flow test results have been reported, although none of the wells had been put on production at the end of 2009.
The Utica Shale is a black calcareous shale from 150 to 700 feet thick and between 3.5% to 5% by weight total organic carbon, TransAmerican said. The play focuses on an area south of the St. Lawrence River between Montreal and Quebec City. Interest has grown in the region since Denver-based Forest Oil Corp. announced a discovery there after testing two vertical wells.
Forest, which has several junior partners in the region, has drilled both vertical and horizontal wells. Talisman Energy has drilled five vertical Utica wells and began drilling two horizontal Utica wells in late 2009 with its partner Questerre Energy, which holds under lease more than 1 million gross acres of land in the region, according to TransAmerican.
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