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Permalink Reply by Les Bamburg on July 10, 2009 at 4:08

Additional story:

Exxon Shale-Gas Find Looks Big

http://online.wsj.com/article/SB124716768350519225.html?mod=dist_sm...

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Permalink Reply by E & E on July 10, 2009 at 5:56

Just to add to the articles:
http://www.reuters.com/article/rbssEnergyNews/idUSN0919886220090709
UPDATE 1-Imperial will not confirm Canadian shale gas rates
Thu Jul 9, 2009 6:19pm EDT
(Updates with comment from Exxon)

CALGARY, Alberta, July 9 (Reuters) - Imperial Oil Ltd (IMO.TO), which is exploring a big shale gas play in British Columbia, declined to confirm comments by its partner on initial production rates that were reported in the Wall Street Journal.

Imperial and Exxon Mobil Corp (XOM.N) are 50-50 partners in the Horn River region of northeastern B.C., where several companies are operating and have touted potential reserves in the trillions of cubic feet.

Exxon's global exploration head told the Wall Street Journal that initial rates have been in the range of 16 million to 18 million cubic feet a day, on par with the prolific Haynesville shale play in Louisiana.

But Exxon said in a statement sent by email that the wells cited in the Journal's story were not production wells, only test wells that "did not flow anywhere near the stated rates."

Imperial spokesman Pius Rolheiser would not confirm those numbers, but pointed out the partners acquired eight more blocks of land in the June 17 British Columbia government land sale.

Exxon is the majority owner of Imperial, with a 69.6 percent stake.

Rich unconventional gas prospects in North America have kept the industry excited about the future of supply, but a current glut of gas due to the recession has pressured prices and reduced drilling activity. (Reporting by Jeffrey Jones; editing by Rob Wilson and Andre Grenon)

Earlene

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Permalink Reply by Dion Warr, CPL on July 10, 2009 at 9:07

And now it somehow makes sense that Exxonmobil has come to support the Alaskan Gas pipeline, particular in support of the Transcanada route that runs in close proximity to the play.

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Permalink Reply by Les Bamburg on July 10, 2009 at 10:23

Dion, Horn River gas will enter the market years before the Alaska Gas Pipeline even starts construction.

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Permalink Reply by Dion Warr, CPL on July 10, 2009 at 22:40

Les B:

Considering its relative proximity to the termini of several pipelines in northwestern Alberta, I would tend to agree with you. However, as I understand it, Exxon has been non-committal about the possibility of this project for years, even though it would serve their interests as to the opening of the North Slope for ng E&P. Recently they have some out in support of it, and it just so happens that their preferred routing would serve to extend the western trunkline points of the Alberta system past their 'newest discovery'?

I'm not saying its the only reason; maybe it's just a 'tipping point' in their interest in feasibility.

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