First Calgary find tripled in size
Plans by Canada's First Calgary Petroleums (FCP) to develop a major gas discovery on the Berkine Basin in the east could be significantly expanded in the coming months, MEED has learned. Probable reserves on the field are three times that contracted for so far.
An accelerated programme of appraisal work will be carried out on nearby prospects, say sources at FCP.
In late February, oil and gas regulator Alnaft approved FCP's $1,000 million scheme to develop the Menzel Ledjmet Est (MLE) discovery in the east of block 405b. The plan is based on the extraction of 1.3 trillion cubic feet (tcf) of gas. But in addition to proven reserves of 1.1 tcf, the field also has probable reserves of 2.8 tcf. Proven, probable and possible reserves total 12 tcf.
'The [published] reserve estimates are conservative,' FCP's chief financial officer John van der Welle told MEED.
Up to 11 more appraisal wells will be drilled on the block. 'The central area is very liquids-rich,' says van der Welle. 'But if gas reserves justify it, we can always add a further train to the gas processing plant at a later date.'
The proposed 200 cubic-feet-a-day gas processing plant on the MLE field is already likely to be increased to 400 cf/d, increasing capital expenditure to $1,300 million. The MLE find is also expected to produce at least 21,000 barrels a day of oil, condensates and liquefied petroleum gas.
Tenders for front-end engineering and design work, expected to take up to six months, will be issued in March, with engineering, procurement and construction (EPC) tenders set for issue by the end of the year.
The EPC contract will cover the design, construction and operation of a gas plant, field gathering systems and processing facilities to produce 200 cubic feet a day (cf/d) of dry gas. Field infrastructure will include four 140-kilometre-long pipelines: three for liquids and one for gas. FCP will share the cost of the pipeline in return for an increased production share.
FCP will fund 75 per cent of the planned development costs, with Sonatrach to cover the rest. Dry gas sales are expected to account for about 50 per cent of production revenue, with liquids making up the balance.
The gas will be marketed by Sonatrach under the terms of a long-term take or pay agreement covering block 405b, signed with FCP in November 2006.
www.meed.com/oilandgas
Plans by Canada's First Calgary Petroleums (FCP) to develop a major gas discovery on the Berkine Basin in the east could be significantly expanded in the coming months, MEED has learned. Probable reserves on the field are three times that contracted for so far.
An accelerated programme of appraisal work will be carried out on nearby prospects, say sources at FCP. In late February, oil and gas regulator Alnaft approved FCP's $1,000 million scheme to develop the Menzel Ledjmet Est (MLE) discovery in the east of block 405b. The plan is based on the extraction of 1.3 trillion cubic feet (tcf) of gas. But in addition to proven reserves of 1.1 tcf, the field also has probable reserves of 2.8 tcf. Proven, probable and possible reserves total 12 tcf. 'The [published] reserve estimates are conservative,' FCP's chief financial officer John van der Welle told MEED. Up to 11 more appraisal wells will be drilled on the block. 'The central area is very liquids-rich,' says van der Welle. 'But if gas reserves justify it, we can always add a further train to the gas processing plant at a later date.' The proposed 200 cubic-feet-a-day gas processing plant on the MLE field is already likely to be increased to 400 cf/d, increasing capital expenditure to $1,300 million. The MLE find is also expected to produce at least 21,000 barrels a day of oil, condensates and liquefied petroleum gas. Tenders for front-end engineering and design work, expected to take up to six months, will be issued in March, with engineering, procurement and construction (EPC) tenders set for issue by the end of the year. The EPC contract will cover the design, construction and operation of a gas plant, field gathering systems and processing facilities to produce 200 cubic feet a day (cf/d) of dry gas. Field infrastructure will include four 140-kilometre-long pipelines: three for liquids and one for gas. FCP will share the cost of the pipeline in return for an increased production share. FCP will fund 75 per cent of the planned development costs, with Sonatrach to cover the rest. Dry gas sales are expected to account for about 50 per cent of production revenue, with liquids making up the balance. The gas will be marketed by Sonatrach under the terms of a long-term take or pay agreement covering block 405b, signed with FCP in November 2006. www.meed.com/oilandgasThis content is only available to full MEED package subscribers (MEED magazine and MEED.com).
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