Calgary

Calgary-based Talisman Energy is abandoning a project it had considered with Sasol Canada to develop Canada’s first gas-to-liquids (GTL) facility to create transportation fuels from natural gas.

Calgary-based Encana Corp. confirmed last week that it is looking for a partnership to help finance some of its North American oil and liquids-rich opportunities.

Calgary-based Encana Corp. confirmed Monday that it is looking for a partnership to help finance some of its North American oil and liquids-rich opportunities.

The promised re-application of a newly split two-part Keystone XL oil pipeline project to the U.S. State Department is still six to eight weeks away, a Calgary, Alberta-based spokesperson for TransCanada Corp. told NGI’s Shale Daily.

In continuing to increase it’s U.S. presence, Calgary-based Natural Gas Exchange Inc. (NGX), a subsidiary of TMX Group Inc., has added three natural gas hubs in the United States for physical clearing.

Calgary independent Nexen Inc., which has been dealing with some internal strife after CEO Marvin Romanow abruptly resigned in January, on Thursday reported that quarterly profits were impacted by lower production and natural gas prices.

Cequence Energy Ltd., a junior explorer based in Calgary, said low natural gas prices have forced it to curtail 1.8 MMcf/d of production in the Peace River Arch area of northwestern Alberta. The producer also has reduced its 2012 capital budget by almost two-thirds, to C$36 million from $100 million. Cequence now expects production through June to average 10,200 boe/d, down from a prior estimate of 12,000 boe/d. Five horizontal wells (gross) are to be drilled in the first six months of this year. “Maintaining our balance sheet while moderating our growth profile in the current low natural gas price environment will allow Cequence the flexibility to add to our existing asset base by capitalizing on new opportunities as they arise,” said CEO Paul Wanklyn. In addition to Peace River, Cequence also operates in the Deep Basin of Alberta, where it has a prospective gas leasehold in the Simonette-Kaybob formation. “The stacked, liquids‐rich targets at Simonette remain an excellent source of significant future production and reserves growth for Cequence, in an improved natural gas price environment,” said the CEO.

Calgary-based Progress Energy Resources Corp. is shutting in 10% of its natural gas production, which is all in Canada, until prices cooperate. The company produced an estimated 224.6 MMcf/d in 3Q2011. “We believe the current low natural gas price is unsustainable,” said CEO Michael Culbert. “Shifting capital to preserve asset value and maintain our balance sheet strength is prudent in this environment.” The Montney Shale-focused producer also is reducing its gas development spending to C$365 million this year, a reduction of C$100 million from the original 2012 capital budget. Progress Energy is jointly developing around 900,000 net acres in the Montney Shale with Malaysia’s Petronas (Petroliam Nasional Berhad). An associated liquefied natural gas export plan also is being studied (see related story).

Calgary-based Progress Energy Resources Corp. said late Tuesday it is shutting in 10% of its natural gas production, which is all in Canada, until prices cooperate. The company produced an estimated 224.6 MMcf/d in 3Q2011.