Prolific

A study of 176 oil and gas fields in the prolific energy basin of Western Canada has found that operating costs continue to rise. Ziff Energy Group analysts report that in 2002, the average cost to operate natural gas fields was up 3% to C$0.70/Mcfe, while average oil operating costs increased 6% to C$6.85/boe.

Despite continued declines from the once prolific Ladyfern field, Canadian Natural Resources achieved higher natural gas production and set a record for gas sales in the second quarter, with credit given to its successful exploitation program in Northwest Alberta. However, an Alberta regulatory requirement to shut in some gas production beginning Sept. 1 will drop the independent’s gas production at least 15-20 MMcf/d, with another 5-10 MMcf/d loss possible, depending on an appeal now being sought by the company.

Despite continued declines from the once prolific Ladyfern field, Canadian Natural Resources achieved higher natural gas production and set a record for gas sales in the second quarter, with credit given to its successful exploitation program in Northwest Alberta. However, an Alberta regulatory requirement to shut in some gas production beginning Sept. 1 will drop the independent’s gas production at least 15-20 MMcf/d, with another 5-10 MMcf/d loss possible, depending on an appeal now being sought by the company.

Using historical trends and assuming the once-prolific Ladyfern production remains flat, Canadian natural gas production through 2002 will be down between 1% and 2% from last year, according to research by Lehman Brothers’ energy and power analysts. The downtrend this year compares with the 6% annual increase experienced in 2001. At the same time, Canadian demand was up 2% year-to-date April over the same period a year ago.

Before the prolific but unexplored deepwater basins offshore Nova Scotia can be tapped, the players will have to ask themselves what comes first: the chicken or the egg? Or, in energy terms, will there be gas wells or pipelines first? To answer that question and overcome the considerable challenges in the region, producers and pipeline operators will need to work together establish a regional infrastructure before production actually can begin, an industry executive said Tuesday in Houston.

The addition of the prolific Ladyfern discovery in northeast British Columbia, which began flowing one month ago, has sent Alberta Energy Co. Ltd.’s natural gas production soaring, producing more than 150 MMcf/d, the company said Friday. AEC’s current gas production with Ladyfern now equals 1.5 Bcf/d, the highest for any Canadian producer, and 40% higher than the company’s average for all of 2000.

The addition of the prolific Ladyfern discovery in northeast British Columbia, which began flowing one month ago, has sent Alberta Energy Co. Ltd.’s natural gas production soaring, producing more than 150 MMcf/d, the company said Friday. AEC’s current gas production with Ladyfern now equals 1.5 Bcf/d, the highest for any Canadian producer, and 40% higher than the company’s average for all of 2000.

A natural gas well in northeastern British Columbia is producingas much as 100 MMcf/d, which would make it one of the top 10onshore discoveries in Canadian history, Murphy Oil Corp. reportedyesterday. The El Dorado, AR-based producer boosted its interest inthe play to 63% last November after acquiring Calgary’s Beau CanadaExploration Ltd. Houston-based partner Apache Corp. holds a 37%interest.

Because of interest in moving more natural gas from the prolificPiceance Basin in northwest Colorado to interconnects withNorthwest Pipeline Co. in Rio Blanco County, CO, and QuestarPipeline Co. in Utah, Colorado Interstate Gas has begun an openseason to solicit support for expanding its Parachute CreekLateral.