Natural Gas In The Edson Field Estimated At 2400 Bcf By Board

LARGEST SINGLE GAS RESERVOIR IN ALBERTA

Highlighted on today's Front Page Map is the EDSON GAS FIELD in central west Alberta with estimated gas in place tabbed at 2400 billion cubic feet by the Alberta Oil and Gas Conservation Board, which makes it just about the largest single gas reservoir presently on stream in the province.

With gas losses from reservoir to surface shrinkage calculated at approximately 30% the initial marketable gas in the field has been estimated by the Board to be 1700 bcf. This falls considerably short of the 2010 bcf of marketable gas estimated by TransCanada Pipe Lines in its recent gas export application, and the 310 bcf difference in reserves is largely the result from a Board estimate based on a two pool concept whereas TransCanada reserves are based on one continuous pool and thus a larger area. Hudson's Bay Oil and Gas Company, owner and operator of the Edson Gas Plant, reports that its estimates of marketable gas reserves at Edson are in the vicinity of 2000 bcf. It is further noted that the saleable gas (gas to be processed through the plant) is estimated at 1814 bcf by TransCanada as of February 28, 1966.

The Hudson's Bay Gas Plant at Edson, the highlight on today's map was constructed in 1965 and placed on stream in December of that year. The plant was constructed with a maximum design capacity to handle 322 bcf of raw gas per day with a saleable gas output of approximately 200 mmcf per day. The apparently large decrease between maximum input and output of the plant is due to the extraction of Hydrogen sulphide (estimated 2%) and condensates, coupled with shrinkage factor. The initial and present output of the plant is 100 mmcf per day saleable gas. This is presently being remedied with the construction of additional gathering lines with a view to increasing the output of saleable gas to 150 mmcf/d by November 1^st, 1966 and then to the maximum capacity of 200 mmcf/d by November 1st, 1967. Meanwhile, development drilling and wildcat exploration are expected to increase reserves at Edson approximately 0.5 bcf per year, for several more years. Further expansion will be linked to reserve factor and an increase in recoverable reserves to 2.5 trillion cubic feet would result in an increase in gas processing to 250 million cubic feet daily.

A recent report published on the Edson Gas Plant by the operator reveals the following quick facts about the plant and fields:

LARGEST MISSISSIPPIAN GAS FIELD IN CANADA

Companies with an interest in the Edson Gas Facility include: ALTANA EXPLORATION COMPANY, THE BRITISH AMERICAN OIL COMPANY LIMITED, CANADIAN FINA OIL LIMITED, CANADIAN SUPERIOR OIL LTD., CHAMPLIN PETROLEUM COMPANY, HAMILTON BROTHERS CANADIAN GAS COMPANY LTD., HUDSON'S BAY OIL AND GAS COMPANY LIMITED, MIDWEST OIL CORPORATION, PACIFIC PETROLEUMS LTD., PAN AMERICAN PETROLEUM CORPORATION, ROYALITE OIL COMPANY LIMITED. SEAFORT PETROLEUM LTD.. SINCLAIR CANADA OIL COMPANY, SUN OIL COMPANY, SUPERTEST INVESTMENTS AND PETROLEUM LIMITED, TRIAD PETROLEUM DEVELOPMENT LTD., and UNO TEX PETROLEUM CORPORATION.

Currently there are two drilling locations licenced within the mapped area and one exploratory test reported to be presently abandoning. The Pan Am Shell B1 Peers 10-26-53-15 wildcat was reported to have reached a total depth of 11,157 feet in the Devonian formations and is reported by the operator a dry hole. Presently on location status are the Altair et al Sundance 10-23 wildcat prospect and the Pan Am F1 Edson 6-1-53-18 development venture. The Sundance 10-23 test will be drilled to a projected depth of 12,000 feet and will evaluate the reef carbonates of Devonian age. The Edson 6-1 test will be drilled approximately 9,100 feet and fill the gas spacing unit in the Elkton gas zone of Mississippian age. It is expected at this time that drilling activity within the mapped; area will continue at a steady rate for the next several years in an effort to extend both oil and gas reserves in the Edson area.