Pouce Coupe Gas Plant Expansion

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The Calgary Herald has reported Birchcliff Energy Limited plans to boost its production this year by about 80 per cent.

The Calgary based company is projecting 2010 exit production of between 17,000 and 19,000 barrels of oil equivalent per day, primarily due to development drilling and the phased completion and expansion of its Pouce Coupe gas plant.

The plant will take natural gas from the companies operations west of Grande Prairie, because all of the infrastructure there is full.

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So in order to bring on new production, Birchcliff will need to build its own natural gas processing facilities.

Last year company spending dropped from $237 million in 2008 to just $102 million and it recorded a 2009 net loss of $24 million.

However, it still intends to boost spending this year to $182 million and the Herald quotes president and chief executive, Jeff Tonken, as believing natural gas prices will strengthen throughout the year, as production falls in Western Canada.




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