Wednesday, January 27, 2010

SPI's potential recoverable resource in the Montney Shale

Talisman Energy (TLM) made a presentation to the Town of Hudson Hope in December of 2008. During that presentation they commented on the Montney shale in the Farrell Creek area. They called it a “world class shale gas resource” and one of the top three plays in North America. They estimated 100 to 350 bcf per section at an expected recovery rate of 10 to 30% (it’s worth noting that SPI recently estimated a recovery rate of 30 to 50% based upon public data).

These are staggering numbers and very significant to Canadian Spirit Resources Inc. (SPI) because SPI’s Montney play is adjacent to TLM’s and both plays have similar topography and geology. TLM has spoken about their Montney lands with a lot of excitement. SPI has the same lands!

SPI currently has 44 sections of deep rights and a 35% net interest. This equals 15.4 net sections. At a 30% recovery rate, SPI has 0.46 to 1.62 tcf of recoverable resource. Clearly, SPI has an enormous resource!

The following is a table that shows SPI’s potential recoverable resource under the various scenarios and an excerpt from TLM’s Hudson Hope presentation.


No comments:

Post a Comment