Oklahoma City-based Devon Energy Corp. and Calgary-based Petro-Canada said last week that they have discovered “significant natural gas flows” at the Tuk M-18 well located about 15 miles south of Tuktoyaktuk in the Mackenzie Delta of Canada’s Northwest Territories. The companies said that the M-18 was tested at restricted rates up to 30 MMcf/d and has estimated recoverable reserve potential of 200-300 Bcf.

The Devon-operated well has estimated sustained deliverability of 60-80 MMcf/d. It is owned by the two companies on a 50-50 basis as part of the companies’ multi-year Mackenzie Delta partnership. The M-18 well was drilled 9,850 feet into the Cretaceous Kamik sands.

“This well firmly establishes Devon and Petro-Canada as legitimate Mackenzie Delta producers with proven reserves,” said John Richels, president of Devon Canada. “These results are very encouraging and bode well for additional drilling next winter.”

During the last two winters, Devon and Petro-Canada drilled three Mackenzie Delta exploratory wells — Kurk M-15, Tuk B-02 and Kugpik L-46.

“Overall, this winter’s drilling program was a great success from an operational perspective,” said Richels. “Drilling and completions were conducted ahead of schedule and under budget, using technologies that were not previously available. While hydrocarbons were encountered at Tuk B-02, it was abandoned following drilling and testing.”

Graeme Phipps, Petro-Canada vice president, exploration, added, “In Kurk M-15 we perforated several zones with gas shows, but didn’t find anything in commercially viable quantities. Kugpik L-46 was also unsuccessful; however, by drilling these wells we advanced our knowledge of the regional prospectivity, which will benefit our future drilling program. Chances of success are always less with wildcat wells, but we’re still confident in the area’s gas potential.”

The companies said they continue to plan next year’s drilling and exploration program with the objective of being able to secure pipeline space when Mackenzie Delta gas is eventually tied into North American markets. Together, the companies hold combined rights to more than one million acres in the Mackenzie Delta.

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