John Deede | Shale Plays Media Google+
Prospects in Alberta’s Duvernay shale formation have attracted several large multinational oil and gas companies to bid up land in the area. The Duvernay formation has been estimated to contain 13 billion barrels of recoverable liquids, which puts it in competition with the Eagle Ford formation in Texas. Robert Baillieul for The Motley Fool reports:
Chevron Corporation (NYSE: CVX) calls the Duvernay its ‘foundation for future growth in Canada’. Late last year, the company reported that its five exploratory wells posted initial production rates up to 1,300 barrels of condensate and 7.5 million cubic feet of natural gas per day. While Chevron hasn’t announced any firm development plans yet, an endorsement from one of the world’s largest oil companies bodes well for the play.
Natural gas giant Encana Corporation (TSX: ECA)(NYSE: ECA) has also reported impressive drilling results. One notable well posted a 30-day initial production rate of 1,400 barrels of condensate and four million cubic feet of natural gas per day. Management is so excited about the field’s prospects that it highlighted the Duvernay as one of its top-six core positions last year.
Talisman Energy Inc. (TSX: TLM)(NYSE: TLM) owns 352,000 net acres in the region and is also optimistic on the Duvernay’s potential. The company recently completed two wells with seven-day initial production rates up to 730 barrels of condensate and 2.2 million cubic feet of natural gas per day.
Baillieul reports that the formation, which is about the size of Portugal, consists of abundant natural gas condensate, which sells at a higher price than other crude blends.
Read the article here: Is This Oil Field the Next Eagle Ford?