Blackbird Energy has signed a letter of intent (LoI) with a third party for the transportation and processing of sour natural gas produced from its Elmworth project in Canada.
A gas handling agreement (GHA) is also expected between Blackbird and the third party soon and all terms have been established and agreed upon within the LoI for the same.
The terms cover transportation to the third party’s sour gas plant as well as the processing of 6 mmcf/d of natural gas and associated liquids from the project.
Recently, the company announced testing of the 2-20 middle Montney well at a restricted rate of 1,768 boe/d.
Transportation and sour natural gas processing is expected to begin on or before 1 January 2017 and is subject to certain third party facility enhancements and regulatory approvals.
According to Blackbird, the third party natural gas transportation tie-in point is 3.8km south of its existing battery site.
At present, Blackbird is in the late stages of its infrastructure engineering and design process, while its infrastructure solution will include a battery, a pipeline gathering system and a water disposal system.
The pipeline gathering system will accommodate the development of up to 75 de-risked well locations in the future.
Blackbird Energy focuses on the Montney fairway at Elmworth, near Grande Prairie, Alberta.
