A little perspective, while things are quiet on KOB...
For those who don't really understand the numbers being talked about on this thread, below is a press release telling of a new "major natural gas find" in the Alberta foothills.
Alberta natural gas prices are stated at about $2.30/mcf.
Just add nine zeros to convert to tcf.
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Evidence of Elephant Country:
IN THE NEWS / Petro-Canada Hits Gas Jackpot In Foothills
Chris Varcoe, Calgary Herald
Calgary-based Petro-Canada says it has made a major natural gas find in the shadow of the Rocky Mountains about 90 kilometres northwest of Calgary.
The new Benjamin Creek well tested at flow rates of 35 million cubic feet per day. Initial production is expected to be 20 million to 25 million cubic feet per day -- making it one of the company's best gas wells ever drilled in Western Canada.
The average natural gas well in the province produces about one million cubic feet per day, while one in the foothills typically generates five million to 10 million cubic feet per day.
"It's quite a prolific area . . . " John Percic of Petro-Canada, the country's second-largest integrated oil producer, said Wednesday.
"We're very pleased at the potential that's there."
The company will drill eight to 10 wells in the foothills region this year to tap into the Turner Valley formation, at a cost of about $5 million per well.
Petro-Canada owns 74 per cent of the Benjamin Creek well, while EBOC Energy Ltd. of Calgary has the rest.
In the past three years, Petro-Canada has completed 18 wells in the Wildcat Hills-Benjamin Creek area, where it produces about 80 million cubic feet of gas per day.
Benjamin Creek is about 20 kilometres north of Wildcat Hills, where Petro-Canada announced a significant new gas play last March.
"It sounds like an exciting well with the potential for some decent reserve additions," said Doug Gowland, an analyst with First Marathon Securities in Toronto. "That has been a good, prolific region."
"Clearly, that type of flow rate is a pretty attractive well," said one Calgary energy analyst who did not want to be identified. "This is a core area for Petro-Canada, together with gas in British Columbia."
The price for gas Wednesday was $2.31 per gigajoule. A gigajoule is about 1,000 cubic feet.
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