PanCanadian finds world-class field off Nova Scotia

During a three-day test, PanCanadian Petroleum Limited's second appraisal well, H-08, which began drilling on May 24 to follow up on the potentially significant Deep Panuke natural gas discovery offshore Nova Scotia, flowed at an average rate of more than 50 million cf/d of natural gas, the maximum capacity of the testing equipment. The well encountered net pay of 325 ft and drilling to date has proven a gas column in the pool of at least 450 ft. The reservoir is currently estimated at six to eight km in length and lies underneath the Cohasset and Panuke offshore oilfield, which PanCanadian and Nova Scotia Resources began exploiting in mid-1992 but reached the end of its life and was closed last December.

"This second appraisal well indicates the Deep Panuke gas field is the most significant discovery in Atlantic Canada in more than a decade," said Gerald Macey, PanCanadian's Executive Vice President - Exploration. "Deep Panuke is emerging as a world class play, and its proximity to markets and pipelines offers PanCanadian the potential to substantially increase reserves and production."

The H-08 well is located about two km southwest of the discovery well PP-3C, which was drilled from the oil production platform and indicated net pay of 225 ft. The first appraisal well, PI-1B, showed net pay of 110 ft. PanCanadian announced in February that each of the first two wells flowed during multi-day tests at more than 50 million cf/d—again, the maximum capacity of the testing equipment. PanCanadian holds 100% working interest in Deep Panuke, which is located approximately 250 km southeast of Halifax, Nova Scotia on the Scotian Shelf.

PanCanadian is currently drilling a third appraisal well, M-79, into Deep Panuke. Once the M-79 results are available, sometime in September, the company will evaluate the reserve size, commercial potential, and development options. Production from Deep Panuke could be onstream by late 2003.

PanCanadian will begin drilling another exploratory test into a separate structure on the Panuke license in the third quarter of 2000.

PanCanadian's land position offshore Nova Scotia is 15 exploration blocks and two production licenses, covering more than four million gross acres, with an average working interest of 55%. The company operates 16 of the licenses.

Edited by Dev George
Managing Editor, Oil and Gas Online