Petsec Energy has spudded the initial commitment well at a shale oil project in Alberta, Canada to determine the site’s potential.
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The company will pay 35% of the cost of the initial well, valued at $700,000, and can then elect to participate in the drilling of up to three optional wells to earn a 24.5% working interest in leases covering 17,280 acres.
The commitment well, located prolific Western Canadian Sedimentary Basin, will be drilled to a proposed total depth of 2,700m, after which results will be extensively evaluated over a three to four month period.
The drilling process is expected to take six weeks to complete.
Petsec chairman Terry Fern said that this project is a significant step in the company’s transition to securing and developing unconventional oil assets.
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By GlobalData"Success in the initial drilling is expected to result in the acquisition of further acreage within the play which holds the potential for a sizeable shale oil project," added Fern.
Western Canadian Sedimentary Basin is Canada’s largest hydrocarbon producing province accounting for 90% of the oil and gas produced within the country.
Image:The shale oil project is located in the prolific Western Canadian Sedimentary Basin. Photo:Qyd.
