Calgary-based Talisman Energy Inc. has completed its C$63 million Erith Project, which adds another 75 MMcf/d of raw natural gas transportation and processing capacity for area producers in the Alberta Foothills.
The pipeline portion consists of 69 kilometers of 10-inch pipe connecting Talisman’s properties in the Alberta Foothills to its Edson gas plant. The project, said the company was completed on time and on budget.
The completion of the Erith Project, combined with eight successful new gas wells, has enabled Talisman to set a new Alberta Foothills production record of 153 MMcf/d, up from 125 MMcf/d in September.
“Talisman’s continuing growth in the Alberta Foothills demonstrates a successful Western Canadian strategy predicated on deeper, more prolific gas targets,” said CEO Jim Buckee. “We have added strategic pieces of infrastructure along the way to support our drilling programs in order to control costs and shorten cycle times. With completion of this project as planned, Talisman continues to be on track to achieve 5% growth in North American gas volumes this year.”
The Erith Project builds on a strategy conceived in 2000 with the acquisition of the Central Foothills Gas Gathering System and the Columbia Minehead Gas Gathering System, which successfully launched Talisman into the midstream business. Throughput at the Edson gas plant is forecast to increase to 210 MMcf/d of raw gas in 2004.
The project includes a 75 MMcf/d dehydration facility, pipeline, a flow splitter and enhanced sulphur recovery at the Edson gas plant. Approximately 48 MMcf/d of capacity will be used by Talisman and will be directed to the Edson plant, with the remainder going to the Hanlan-Robb gas plant.
Most of Talisman’s 2004 drilling activity in the Alberta Foothills will be focused in the Chungo/Bighorn area, which is expected to keep the Erith infrastructure at full capacity, the company said.
Talisman’s Alberta Foothills activity remains high with 10 wells (four operated, six non-operated) currently being drilled. Talisman expects to spend a record C$161 million in the central and northern Alberta Foothills this year, including drilling 34 wells (13.4 net). A number of smaller compression projects are also expected to be completed during the fourth quarter of 2003 and the first quarter of 2004.
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