Canada Energy announced that completion operations have begun on the Portage c-20-E horizontal Montney well. The Joint Venture Partner's decision to drill this well horizontally was based, in large part, upon significant gas shows that were encountered in the Doig and Montney formations during the drilling of the vertical portion of this well. The Montney formation will be tested via a multi-stage fracture stimulation with subsequent production testing. This process is expected to take 3 weeks.
In addition, the Joint Venture Partner of the Project plans to start the drilling of a second horizontal Montney well prior to July 15th. The location has been selected and a drilling application submitted. This well is expected to be completed and tested in early Q4 2010.
Canada Energy is carried by its joint venture partner through the completion of the c-20-E and the next $11 million of joint exploration expenditures. Canada Energy will have a 50% working interest in the deep rights at Peace River upon the Joint Venture Partner completion of its earn-in obligations.
Canada Energy owns a 50% interest in the Peace River gas plant and connection to the Spectra Energy sales pipeline which would be available to bring this Montney gas to market.
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