THE WALL STREET JOURNAL: Shell Canada Announces Major Natural Gas Discovery In Central Alberta: “Shell Canada Ltd has made a "major" natural gas discovery on a previously untested structure 30 kilometers southwest of Rocky Mountain House in central Alberta.” (ShellNews.net) Posted 9 Dec 04
DOW JONES NEWSWIRES
CALGARY -- Shell Canada Ltd. (SHC.T) has made a "major" natural gas discovery on a previously untested structure 30 kilometers southwest of Rocky Mountain House in central Alberta.
In a news release, the company said test data on the exploration well, the Shell Tay River Ricinus W 2-6-37-10-W5, indicate the well will be capable of a restricted flow rate of 30 million cubic feet a day through existing 3.5-inch tubing.
Based on seismic evaluation, pressure and well data, Shell estimates this new feature could contain 500-800 billion cubic feet of original raw gas in place. It said the raw gas contains about 60% methane and 35% hydrogen sulphide.
Shell said it has a 75% interest in the new exploration well and Mancal Energy Inc. holds the remaining 25%.
The company said "this is one of the largest gas discoveries in western Canada in recent years and related economic benefits will be important to both Shell and the province of Alberta."
Shell said the discovery well is in the vicinity of existing sour gas processing facilities with capacity to handle incremental volumes, and is expected to be tied-in and producing by mid-2005. Further delineation drilling is also planned during 2005.
Shell Canada is an integrated oil and gas company.
Company Web Site: http://www.shell.ca
-Judy McKinnon, Dow Jones Newswires; 416-306-2100