With an enviable gas-rich exploration and production asset base and a growing natural gas storage network, EnCana Corp. remains steadfast in its prediction that it will grow about 10% a year through 2006, according to the president of its U.S. division. However, EnCana’s growth most likely will come from non-conventional drilling methods, including extracting coalbed methane (CBM) gas and multi-zone, tight gas exploitation.

Roger Biemans, president of EnCana Oil & Gas (USA) Inc., said in New York Tuesday that the company will rely on its “huge, exploitable resource plays” to lead its growth to mid-decade. Biemans, whose unit is based in Denver, was a presenter at the Independent Petroleum Association of America’s Oil & Gas Investment Symposium.

“Last year, we saw 12% per share growth,” said Biemans. Of that, he said 11% was organic, or through the drillbit, and that type of growth will provide the company with “years of internal built-in growth.” EnCana’s exploration base exceeds 25 million undeveloped onshore and offshore acres, with 17 million net undeveloped acres onshore in North America — 90% of its reserves and production. Operations are concentrated in the two highest growth regions of the continent, Western Canada and the U.S. Rockies, and 77% of its onshore capital investment in natural gas.

However, Biemans said EnCana’s production future “lies in non-conventional, or resource plays.” Because “most of the onshore has already played out,” but he noted that “resource plays are assets of significant, unbooked reserves.” EnCana plans to exploit the resource reserves by using technology and best practices that are both “repeatable and achievable” to exploit tight gas plays, horizontal and underbalanced drilling zones and CBM

Initial results from its CBM pilot project in Alberta are encouraging, said Biemans. EnCana has current pilots producing from 35 wells at rates ranging from 30-250 Mcf/d, and now has begun a demonstration-scale commercial project. About 175 wells have been drilled and tested east of Calgary, where EnCana has contiguous land blocks and existing infrastructure. “Coals are laterally continuous over most of our land base,” which may mean “multi-TCF potential on EnCana lands.”

Another business unit expected to step up over the next few years is EnCana’s gas storage business. Last year, the company sold about 2.3 Bcf/d of its North American gas; this year, it expects to sell 2.5-2.6 Bcf/d. The storage unit has total capacity of approximately 145 Bcf and withdrawal capacity of 2.7 Bcf/d. By 2005, the company expects its capacity to reach 200 Bcf, with withdrawal capacity of more than 4 Bcf/d.

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