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
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
"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."
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