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.
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Expansion Eyed for Discovery Gas System in GOM
An expansion is planned for the Discovery natural gas gathering pipeline system in the Gulf of Mexico (GOM) to gather more than 400 MMcf/d from the deepwater Keathley Canyon (KC), Walker Ridge and Green Canyon blocks, according to Williams Partners LP and DCP Midstream Partners LP.
Small California E&P Makes Big Play in Alaska Shale
San Diego, CA-based Royale Energy Inc., a publicly held exploration and production (E&P) independent with about 15 MMcf/d of gas production, mostly in Northern California, was the biggest bidder for Alaska North Slope shale oil plays offered last month in a state lease sale.
Alaska Producer Begins Flowing Gas
Production began last Saturday from Buccaneer Energy Ltd.’s Kenai Loop No. 1 well in gas-hungry Southcentral Alaska. The well is expected to produce up to 5 MMcf/d during the next two to three months while performance is monitored.
Transportation Notes
Effective with Evening Cycle nominations (Cycle 2) for Wednesday’s gas day, Ruby Pipeline increased operationally available capacity for the Ruby West Constraint to 1,460 MMcf/d, which is the system’s total design capacity.
ExxonMobil Secures Shale Leases in Ohio
Landowners in Belmont County, OH, which has become a hotbed of activity for prospective shale exploration, are signing leases with ExxonMobil Corp. subsidiary XTO Energy Inc. to allow drilling to begin on their acreage, the company has acknowledged.
MarkWest, Sunoco Moving Forward with Marcellus Pipeline Plans
An open season for Project Mariner West, a proposed pipeline to deliver ethane from MarkWest Liberty Midstream & Resources LLC’s Houston, PA, processing and fractionation complex in the Marcellus Shale to Sarnia, ON, has received binding commitments that enable the project to proceed as designed with an initial capacity to transport approximately 50,000 b/d and the ability to expand to support higher volumes as needed, according to Sunoco Logistics Partners LP.
Southern Union Project Targets Permian NGLs
Southern Union Co. said its Southern Union Gas Services (SUGS) midstream business will construct a 200 MMcf/d gas processing plant and associated gathering, compression and treating facilities to serve growing production from the Avalon, Bone Spring and Wolfcamp plays of West Texas and Southeast New Mexico.
Industry Brief
Enbridge Energy Partners LP said it will construct a 150 MMcf/d cryogenic gas processing plant on its Anadarko gas gathering system near Wheeler, TX. The $230 million Ajax plant would serve growing production from the Granite Wash play and is expected to be in service by early 2013. The plant would bring total Anadarko System processing capacity to 1.2 Bcf/d, the partnership said. The Anadarko System consists of about 2,800 miles of gas gathering and transportation pipelines in southwest Oklahoma and the Texas Panhandle, one gas treating plant and 12 gas processing plants, including the planned Ajax and previously announced Allison plants.
FERC Clears ETC Tiger Pipeline Expansion for Service
The Federal Energy Regulatory Commission Tuesday approved a request by ETC Tiger Pipeline LLC, a unit of Dallas-based Energy Transfer Partners LP, to place a 400 MMcf/d expansion of its system in service.