Texas-based Quicksilver Resources reported that its Canadiansubsidiary, MGV Energy, has entered into a joint venture withPanCanadian Petroleum, to explore and develop coal-bed methane(CBM) reserves on one million acres of PanCanadian-owned land. Theproject will focus on PanCanadian’s Palliser block in SouthernAlberta, and is one of the largest potential CBM plays in NorthAmerica, the companies said.

“Entering this joint venture with PanCanadian, the most activedriller and the largest fee acreage holder in Western Canada, is atremendous opportunity to join our production expertise in shalegas and CBM plays with the Canadian development experience andstrength of PanCanadian,” said Thomas Darden, Quicksilver’schairman. “We have developed a niche in the Antrim Shale formationof Michigan, where over the last decade we have grown to be thelargest independent natural gas producer in the state. The AntrimShale is one of the most prolific shale gas reservoirs in NorthAmerica. It is geologically similar to CBM and shares the sameproduction characteristics, which makes it ideal for our uniqueengineering expertise.”

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

PanCanadian and MGV have already teamed up and formed a workingrelationship in Alberta by acquiring and developing shallow gasreserves.

“The extensive acreage within the joint venture andPanCanadian’s existing infrastructure in Alberta are key toenhancing the economic potential of this CBM play,” Darden said.”Over the last few years, CBM has become recognized as one of themost significant remaining natural gas resources in the world.Companies with CBM production have generated some of the fastestgrowing market values in our industry segment, and we look forwardto joining that group.”

Alex Steis

©Copyright 2000 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.