TLM's Montney wells

Word has been spreading around that Talisman (TLM) has tied in two wells and has been flowing gas from them through their gas plant in the greater Farrell Creek area and sweet gas from those two horizontal wells have filled the plant’s current capacity of 23 mmcf/d. The two wells are from their c-87 and/or c-85 locations immediately north of Canadian Spirit Resources Inc.'s (SPI) west block. These two well locations have horizontal wells with horizontal legs extending within one half mile of SPI’s land.

This is very significant due to the proximity of TLM's land to SPI’s and it appears that these horizontal wells are flowing in excess of 11 mmcf/d at the moment. TLM has designed their greater Farrell Creek plant to be expandable up to the capacity of their Spectra pipeline tap of 60 mmcf/d.

TLM has stated in their latest news release that they are achieving early success in the Montney Shale with initial test rates that are exceeding expectations and they are expecting to move into the development stage. TLM also calls their Montney lands “One of the largest economically viable resource plays in North America”. In addition, TLM has stated that their focus in the Montney Shale is in the greater Farrell Creek area which they have derisked.

It is possible that TLM was the winning bidder on the lands that sold at the October BC sale for $60M ($16,300/hectare) and success by TLM significantly derisks and increases SPI’s value because of the similarity in their properties/topography and their close proximity.