Calgary

Calgary-based Enterra Energy Corp. said last week that it has acquired a natural gas property in the Bindloss area of southeast Alberta. Based on a third party engineering evaluation completed Jan. 1, the property contains over 3.5 Bcf of proven reserves. Enterra said the acquisition will increase its proven gas reserves by 33%.

A merger by Calgary-based independents Canadian Natural Resources Ltd. and Rio Alto Exploration Ltd. will create the fourth largest natural gas producer in North America in a deal valued at C$2.4 billion ($1.54 billion). As a result of the merger, Canadian Natural expects to produce between 1,500-1,560 MMcf/d in the second half of 2002. Canadian Natural’s natural gas exposure will increase to 55% of its total production base on a barrel of oil equivalent basis, while at the same time giving it natural gas development opportunities in a new core region in Northwest Alberta.

Centrica North America completed its C$1 billion acquisition of Enbridge Services Inc. (ESI) from Calgary- based Enbridge Inc. The acquisition doubles Centrica’s Canadian customer base and brings its total North American customer count to 3.7 million, making it by far the largest retail marketer on the continent. The combined companies will employ more than 2,000 full-time people.

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.

Finding success not only in Canada, but in its ever-growing international base, Calgary-based Talisman Energy Inc. said Tuesday it increased its proved reserves by 26% in 2001 to 1.5 Bboe, and probable reserves increased by 27% to more than 990 MMboe. The company replaced 304% of production (including acquisitions) at a cost of C$7.08/boe. Excluding acquisitions, the replacement rate was 221%, at a cost of C$5.34/boe.

Despite a 74% drop in net income in the fourth quarter, Calgary-based PanCanadian Energy Corp. said it had the strongest annual financial results in its history because of higher natural gas prices earlier in the year, increased gas production and favorable price hedges. Due to lagging gas prices — neighbor and proposed merger partner — Alberta Energy Co. (AEC) experienced a drop in earnings during 4Q 2001, falling 83% from the fourth quarter of 2000 to C$80 million (C$0.46 per share diluted).

Despite a 74% drop in net income in the fourth quarter, Calgary-based PanCanadian Energy Corp. said it had the strongest annual financial results in its history because of higher natural gas prices earlier in the year, increased gas production and favorable price hedges.

Promax Energy entered into a farmout joint venture agreement with Trident Exploration Corp. of Calgary to develop coalbed methane (CBM) under its Cessford properties in Alberta. Terms of the joint venture include a 12-well pilot program with all costs of the test borne by Trident, which will earn the right to commence a commercial drilling project on customary oil and gas industry terms. CBM production has become a significant and rapidly growing source of natural gas supply in the U.S., and interest is increasing in the CBM potential of Western Canadian coals. The Promax acreage hosts both shallow and deeper coal seams of interest. “The extensive and contiguous Promax land position, coupled with its database of logs, samples and seismic lines, will allow Trident to move rapidly in identifying the most prospective areas and starting a pilot project,” said Trident President Jon Baker. “Access to the Promax gas infrastructure and drilling economies will enhance the commercial potential for CBM development.” Promax is focused on natural gas in southeastern Alberta. It is well positioned to play a key role in the development of 500,000 acres of shallow gas in the Cessford area of Alberta, including platform production from the Medicine Hat/Milk River zones and potential higher productivity from up to 15 other horizons.

Promax Energy entered into a farmout joint venture agreement with Trident Exploration Corp. of Calgary to develop coalbed methane (CBM) under its Cessford properties in Alberta. Terms of the joint venture include a 12-well pilot program with all costs of the test borne by Trident, which will earn the right to commence a commercial drilling project on customary oil and gas industry terms. CBM production has become a significant and rapidly growing source of natural gas supply in the U.S., and interest is increasing in the CBM potential of Western Canadian coals. The Promax acreage hosts both shallow and deeper coal seams of interest. “The extensive and contiguous Promax land position, coupled with its database of logs, samples and seismic lines, will allow Trident to move rapidly in identifying the most prospective areas and starting a pilot project,” said Trident President Jon Baker. “Access to the Promax gas infrastructure and drilling economies will enhance the commercial potential for CBM development.” Promax is focused on natural gas in southeastern Alberta. It is well positioned to play a key role in the development of 500,000 acres of shallow gas in the Cessford area of Alberta, including platform production from the Medicine Hat/Milk River zones and potential higher productivity from up to 15 other horizons.