Thursday, December 27, 2012

Chevron & Apache Team Up at Kitmat



Chevron and Apache formed a  joint venture to develop shale gas in north western Canada.  Chevron, with its expertise in LNG plants, will run the down stream operations in Kitimat - a new port on the western Canadian coast in British Columbia - and Apache will run the upstream operations, developing shale gas resources in the Horn River and Liard Basins in northwestern British Columbia and northeastern Alberta.

In June, Apache announced long-term test results from three wells at Liard, including the D-34-K well, which was drilled to a vertical depth of 12,600 feet with a 2,900-foot lateral and a six-stage hydraulic fracturing completion. The 30-day initial production rate averaged 21.3 million cubic feet of gas per day, or 3.6 MMcf per day per frac stage. The ultimate recovery from the D-34-K well is estimated to be 18 billion cubic feet of gas. “We believe this is the most prolific shale gas resource test in the world,” Farris said.
As part of this transaction, Apache will sell to Chevron a 50 percent interest in its 100 percent-owned undeveloped Liard and Horn River acreage for $550 million. Apache will pay Chevron to equalize interests in other Horn River acreage owned by Apache, Encana and EOG. Apache also will pay Chevron to increase Apache’s ownership of the LNG plant and pipeline projects to 50 percent.

Welcome to the Collaborative Revolution!

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202 Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom


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