Natural Gas Exploration

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The June sale of oil and gas drilling rights in Northeast BC is scheduled for tomorrow and, expectations are running high, it could set another monthly record.

Six of the ten best sales in provincial history have been recorded, in the past twelve months and, last month’s set the current record, at 441 million dollars.

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Much of the industry interest in Northeastern BC is being fuelled, by the shale gas play, in the remote Horn River basin, north of Fort Nelson.

Yesterday EnCana, one of the key exploration players in the region, put some numbers behind the reserve speculation.

The country’s largest gas producer says, it could eventually produce one billion cubic feet of gas per day.

That’s enough to heat five million Canadian homes for a year and, the equivalent of about 170 thousand barrels of oil…bigger than most oil sands mines.

However, infrastructure barely exists in the region and, vehicular access is often restricted to a short winter period, when the muskeg is frozen.

Thus, there is no question that will play a major role, in the development of the area.

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