Unbridled Energy announced that it is finalizing its land strategy on three internally-generated shale gas plays located in western Canada. The company is expected to be well-positioned to move on these plays after completing negotiations with third parties.
The company holds an averaged 35% working interest in over 10,000 acres with the option to acquire an additional 3,840 acres in the Chambers area of Alberta. Recently, Unbridled has taken over as operator of the Chambers play and plans to tie in two wells this year. The above-average rainfall has delayed the company’s operations, but construction has now begun to build a road and lay a pipeline.
Once the drilling of the 16-21 well is completed, Unbridled Energy will earn 3 of the 6 option sections, increasing its acreage position to more than twice what it is now. A drilling rig has been secured and the drilling is expected to take place next month.
The management expects the well to encounter many gas-bearing targets, including tight gas sands and a shale target of interest. The Elkton formation at approximately 10,000 feet is in particular interest to the company as it is the most prolific.
The company has begun operations to tie in two existing gas wells. The 3-17 has been tested at over 3 mmcfe/d (million cubic feet equivalent per day), and the 6-18 has the potential of producing over 450,000 cfe/d. The new pipeline is scheduled to be completed in the third quarter of this year.
President & CEO, Joe Frantz stated, “It is particularly motivating to be evaluating three new, large scale shale gas reservoirs and farm-in opportunities in Canada. The industry continues to be increasingly focused on these plays. At Chambers, we are finally progressing nicely on our field work. The rainy spring turned into a rainy summer, which slowed us down slightly. However, crews are now building a road to our new 16-21 well location. The new road will also be used to access a future earning well to increase our overall acreage position to 14,080 ac. Crews will soon start laying the pipeline into the 3-17 well and the pipeline to the 6-18 will follow within 2 months“.
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