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Alta-Gas LNG development plans

CIBC World Markets Analyst, David Noseworthy says he believes the other party is Painted Pony Petroleum Limited, a Calgary-based producer, which announced the sale of its Saskatchewan assets last month to concentrate on its B.C. Montney acreage.

The Calgary Herald quotes Alta-Gas Chairman and Chief Executive, David Cornhill as saying, “we are in advanced negotiations with a significant Montney reserve owner to form a strategic alliance.”

He reportedly made the statement during a second-quarter results conference call with analysts, adding “we are hopeful a public announcement can be made within 30 days.”

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The Herald report also quoted him as saying the deal could involve up to an equivalent of 500 million cubic feet of natural gas per day from here northeastern B.C.

Alta-Gas and a Japanese partner continue to pursue their liquefied natural gas project to be built at either Kitimat or Prince Rupert, and already have a National Energy Board permit to export 2.3 million tonnes of LNG per year.

The same partnership is also reported to be negotiating to take over the Douglas Channel LNG project, which has been in court protection, under the Companies’ Creditors Arrangement Act, since running short of funds last October.