Calgary

Calgary-based AltaGas Services Inc. said Friday that it has entered into a joint venture agreement with Taylor NGL LP to develop the Joffre Ethane Extraction Plant located in Joffre, AB. AltaGas and Taylor will each own 50% of the Joffre Plant, which is expected to have initial production of 10,400 b/d of natural gas liquids. Under the agreement, Taylor will construct and operate the Joffre Plant, which is expected to be operational by the first quarter of 2003. Regulatory approval for the construction and operation has been received and engineering, procurement and construction contracts have been awarded. The Joffre Plant will be located adjacent to the NOVA Chemicals Corp.’s Joffre petrochemical complex and will recover ethane, propane, butane and condensate from the fuel gas used at the complex. The ethane production will be sold to NOVA. “Extraction has been an important part of AltaGas’ asset portfolio since 1994 when we first invested in an extraction facility at Empress, AB,” said David Cornhill, AltaGas CEO. “We made further investments at Empress in 1998 and currently have approximately $29 million invested in extraction facilities providing net processing capacity of 3,680 barrels per day. The investment in the Joffre Plant will more than double our present net extraction processing capacity to 10,353 barrels per day. The Joffre Plant fits AltaGas’ strategy of making prudent investments. It will provide a good mix of stable fee for service and margin-based revenues and add depth to our midstream portfolio.”

Calgary-based Gemini Corp. said Wednesday that its new natural gas processing facility in Burstall, SK has successfully commenced operations. “This is significant because it is the first custom gas processing facility to be designed, constructed, owned and operated by the corporation,” said Carl Johnson, CEO. “We will continue to pursue similar projects, including those outside the oil and gas sector, since we believe that this type of service has strong growth potential and could represent an important part of the corporation’s future operations.” The initial design capacity of the plant is 3.8 MMcf/d with provision to expand to 7 MMcf/d. The cost was approximately $1 million and it should generate revenues of $3.6 million over the next 10 years, the company estimated. The anticipated life of this project is in excess of 15 years based on estimates of recoverable reserves in the immediate area. Gemini supplies engineering, project management, fabrication and construction, custom contract operating services and electrical and instrumentation services in Canada and internationally, predominantly to the oil and gas industry.

The Calgary arm of a U.S.-based producer has found a key to keep access to the hazardous 30% of western Canadian natural gas – bend over backwards to make peace with increasingly fearful communities. Burlington Resources Canada Energy Ltd., a wholly-owned subsidiary of its Houston namesake, set a new standard for securing co-operation with development of “sour” gas, laced with hazardous hydrogen-sulphide.

Calgary-based Canadian Superior Energy Inc. said that it has commenced drilling of the first of three deep gas wells it proposes to drill over the next 90 days in the Farmington, Umbach and Altares areas of northeast British Columbia. The first test well on this new 5,120-acre prospect is targeting the highly prospective Kiskatinaw formation at a cost of approximately C$1.5 million and it will be drilled to a total depth of 2,500 meters. The company estimated reserves range up to 20 Bcf per well with deliverability in the area ranging from 8 to 10 MMcf/d per well. Several follow-up locations are present on this new play. Furthermore, Canadian Superior’s President Greg Noval said that in the Umbach area, approximately 80 miles northwest of Fort St. John, operations are currently underway to drill a 1,160 metre test well targeting the lower Cretaceous Cadomin and Gething formations. Canadian Superior is the operator of this 1,250-acre prospect with a 62.5% working interest. The new Umbach well is a follow-up well to a recent Canadian Superior discovery at a-45-F/94-H-3, which was put onstream by the company at 1.5 MMcf/d in late November. In addition, in the Altares area approximately 45 miles west of Fort St. John, Canadian Superior is preparing to drill a 2,525 metre Debolt test targeting large reserves estimated at from 100 to 500 Bcf in the Mississippian formation. During the third quarter of 2001, Canadian Superior acquired 3,200 gross acres (1,600 net, 50% working interest) on this high impact foothills over-thrust prospect located in northeast British Columbia. A well is planned for drilling in early 2002. Canadian Superior said the Kobes field, which is directly on trend to the northwest, is a 250 Bcf field, which was developed on a similar Mississippian over-thrust play. Canadian Superior is operator of the prospect and a detailed seismic program is currently underway to define drill-site locations for early next year.

A Calgary judge on Thursday rejected a bid by Enron Canada, a unit of Enron Corp., for a court order to prevent contract cancellations by Canadian marketers and producers. The move effectively will push Enron Canada into insolvency and bankruptcy is expected.

Despite a quarter of weak natural gas prices, Calgary-based Canadian 88 Energy Corp. said last Tuesday that its third quarter cash flow came in at C$7.5 million, more than three times the C$2.3 million reported in the third quarter of 2000, advising that it continues on track to achieve a year-over-year increase in production and reserves.

Despite a quarter of weak natural gas prices, Calgary-based Canadian 88 Energy Corp. said Tuesday that its third quarter cash flow came in at C$7.5 million, more than three times the C$2.3 million reported in the third quarter of 2000, advising that it continues on track to achieve a year-over-year increase in production and reserves.

Calgary-based Anderson Exploration Ltd. on Friday accepted the C$40 per share cash tender offer of Devon Energy Corp., based in Oklahoma City. Devon also said it had received “all necessary approvals” to acquire Anderson in a $4.6 billion deal first announced in September (see Daily GPI, Sept. 5). When the deal is completed, Devon would become the top independent oil and gas producer in North America, a post currently held by Anadarko Petroleum Corp. About 128 million of Anderson’s shares were tendered under the offer, representing 97% of the Canadian company’s total shares outstanding. Devon intends to take up the tendered shares and pay the depository on Monday (Oct. 15) and will acquire the remaining shares of Anderson by compulsory acquisition for C$40 per share in cash.

Following through on a cost-cutting initiative begun in 1999 under another CEO, Calgary-based TransCanada PipeLines Ltd. on Friday said it has reached an agreement to sell some of its natural gas marketing and trading operations to BP Gas & Power. Included in the sale is CanStates Gas Marketing, a contract to manage gas supply assets for SEMCO Energy Gas Co., and the marketing and trading operations in its Omaha, NE office. Financial details were not disclosed.