NGI The Weekly Gas Market Report / NGI All News Access

MGV Energy, PanCanadian Target Canadian Coal-bed Methane

MGV Energy, PanCanadian Target Canadian Coal-bed Methane

Texas-based Quicksilver Resources reported that its Canadian subsidiary, MGV Energy, has entered into a joint venture with PanCanadian Petroleum, to explore and develop coal-bed methane (CBM) reserves on one million acres of PanCanadian-owned land. The project will focus on PanCanadian's Palliser block in Southern Alberta, and is one of the largest potential CBM plays in North America, the companies said.

"Entering this joint venture with PanCanadian, the most active driller and the largest fee acreage holder in Western Canada, is a tremendous opportunity to join our production expertise in shale gas and CBM plays with the Canadian development experience and strength of PanCanadian," said Thomas Darden, Quicksilver's chairman. "We have developed a niche in the Antrim Shale formation of Michigan, where over the last decade we have grown to be the largest independent natural gas producer in the state. The Antrim Shale is one of the most prolific shale gas reservoirs in North America. It is geologically similar to CBM and shares the same production characteristics, which makes it ideal for our unique engineering expertise."

The exploration phase is scheduled to begin before the new year with the drilling of test wells. MGV will operate the exploration and pilot phases of the joint venture, and both companies will split the costs.

PanCanadian and MGV have already teamed up and formed a working relationship in Alberta by acquiring and developing shallow gas reserves.

"The extensive acreage within the joint venture and PanCanadian's existing infrastructure in Alberta are key to enhancing the economic potential of this CBM play," Darden said. "Over the last few years, CBM has become recognized as one of the most significant remaining natural gas resources in the world. Companies with CBM production have generated some of the fastest growing market values in our industry segment, and we look forward to joining that group."

Alex Steis

©Copyright 2000 Intelligence Press, Inc. All rights reserved. The preceding news report may not be republished or redistributed in whole or in part without prior written consent of Intelligence Press, Inc.

Copyright ©2018 Natural Gas Intelligence - All Rights Reserved.
ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus