Onshore Oil & Gas
Over the past five years, onshore petroleum exploration in Nova Scotia has continued to increase. The establishment of petroleum-based infrastructure as a result of offshore production, including the construction of an inter-provincial pipeline which carries gas to local markets and to the north-eastern United States, and the success in the Corridor Resources' McCully gas field in New Brunswick have caught the attention of a number of companies that see the potential for new exploration opportunities in Atlantic Canada.
Onshore Exploration Outlook
Based upon exploration commitments and announced plans, several exploration wells, testing of existing coalbed methane wells and a seismic program are expected to be completed by the end of 2008.
There are currently 6 conventional exploration agreements plus 3 coalbed methane agreements held by industry. These agreements account for 1.2 million hectares, with work commitments in excess of $10 million over the next 2-3 years.
Exploration Call for Bids
There is an expectation that there may be a call for bids before the end of 2008.
Exploration Activity
Contact Exploration Inc. is currently Nova Scotia’s largest onshore landholder with three parcels of land. Contact Exploration has produced gas wells in Alberta and has an exploration license onshore New Brunswick and Newfoundland and Labrador. A well is required to be drilled on each block in order to renew each agreement. Currently Elmworth Energy (Triangle Petroleum Corporation) has farmed-in on one of these blocks and is exploring its potential for shale gas.
EOG Resources is one of the largest independent oil and gas companies in the United States. In partnership with Husky Energy, a detailed 3D seismic survey was completed in late 2004. Three wells were drilled in the Shubenacadie Basin in 2005 following interpretation of the data. Further drilling is currently taking place on this block by Forrent Energy.
Coalbed Methane - Stealth Ventures Ltd. holds the rights to explore coalbed methane (coal gas) in the Stellarton and Springhill areas. These basins are thought to contain an excess of 1.0 trillion cubic feet of in-place gas in the coal seams (generally 2000 to 8000 feet below ground service). Stealth Ventures Ltd. uses horizontal drilling techniques as an efficient means of producing this valuable resource. Because of new technology and an increasing need for cleaner burning fossil fuel, coalbed methane is an unconventional resource opportunity.
Work during 2007 could involve a seismic program, several drilling programs and testing for the existing coalbed methane wells. The Department is currently reviewing an application by Stealth Ventures Ltd. which includes a development plan in the Springhill area for coalbed methane. The Minister of Energy will make a decision on or before October 25, 2007.
A Multi-Stakeholder Advisory Committee (MSAC) has been developed to work with the community in moving coalbed methane activity towards development.
If you have additional information relevant to this page please send it to info@energyconsultant.ca noting that it will be reviewed for content prior to any posting, thank you!
We acknowledge the NS Department of Energy for contributing information to this page.
Their website is www.gov.ns.ca/energy/AbsPage.aspx
RELATED ARTICLES
Cornell Fracking Expert Urges Caution
An engineering professor from Cornell University urged Maritime governments to be cautious about shale gas development.
Tony Ingraffea, who has a Ph.D. in rock fracturing mechanics, told delegates at the "Protecting our Communities: A Conference on Shale Gas and Fracking" conference in Truro, N.S., on Saturday that there is no reason to rush into shale gas drilling.
Ingraffea said there is still much that science doesn't know about the process, but the fact that it causes groundwater contamination is not in doubt.
SPECIAL REPORT Fractured Future
In Nova Scotia, the Dexter government announced a review of its regulations regarding shale gas development in April.
Ingraffea said it could take 10 years to collect enough data to determine the safety of hydro-fracking.
"There will be contamination incidents," he said.
"The question is: how many, at what rate should we expect them over space and time and what will be the environmental, human health and financial costs?"
Ingraffea said shale gas will only increase in value over the coming years and waiting to extract it will avoid any pitfalls in the still-developing extraction process.
"There's no logical reason other than political reason for Nova Scotia to join the experiment. Let it play out where it's ongoing," he said.
"Let the science continue to evolve. Let the technology continue to evolve and get to a point … four to five, maybe even 10 years from now, when adequate science has been done and the cumulative impact of all this activity on the environment, human health and climate can be scientifically assessed."
The Truro conference was a gathering of citizens, activists and experts sponsored by NOFRAC, the Ecology Action Centre, the Council of Canadians and the Canadian Association of Physicians for the Environment.
Fracking has been a controversial issue in Nova Scotia and New Brunswick, where numerous groups and communities have come forth to oppose shale gas exploration.
Ingraffea was a researcher with the oil and gas industry for 25 years, where he specialized in hydraulic fracture simulation. He was invited to speak to the Parliamentary Standing Committee on Natural Resources about shale gas in February 2011.
http://www.cbc.ca/news/canada/nova-scotia/story/2011/12/04/ns-frack-expert-caution.html
200 In Tatamagouche Meet Over Natural Gas Exploration
About 200 people attended a public meeting Saturday in Tatamagouche, in northern Nova Scotia, to discuss the prospect of gas exploration on the north shore.
Don Wilson with the Sierra Club, which hosted the meeting, said at least one company has already been granted exploration rights.
He said he's concerned that if the right deposits are found, the north shore will see an influx of gas mining operations.
He said the Tatamagouche tourism industry would be threatened and he's not convinced about the promise of new jobs from development.
"Good paying jobs will go to people from Calgary and Houston, wherever the drilling companies come from," Wilson said.
Wilson said he's also concerned about the prospect of hydraulic fracturing, or hydro-fracking, that could be used in any future gas extraction.
Hydraulic fracturing pumps a mixture of chemicals and water into the ground, which creates cracks in shale rock formations. That allows companies to extract natural gas from areas that would otherwise go untapped.
"I think the most important thing that came out of the meeting was the fact that people were becoming so engaged in this topic," said Heidi Verhuel, an environmental education coordinator with the Sierra Club.
So far the Nova Scotia government has resisted calls for a ban on fracking.
"Towards the end, the discussion was becoming 'What do I do? Who do I give my email to? Where can I sign up?' — really connecting," Verhuel said. "I think that's the most heartening thing I've seen in a long time, just the level of engagement of people over this issue."
Verhuel said a coalition against hydro-fracking has been started, and they hope to gather 10,000 signatures by the end of November and present them to the province.
The Department of Environment says it's waiting for a report due in March, which will examine how other jurisdictions regulate the process, before making any decision.
http://www.cbc.ca/news/canada/nova-scotia/story/2011/10/29/ns-gas-exploration-tatamagouche.html
Inverness Environmental Group Opposes Drillling
An Inverness County environmental group is appealing a recently granted oil and gas exploration permit in the area. Toronto-based PetroWorth Resources Inc. has been granted provincial approval to drill a test well on a property in West Lake Ainslie. The Margaree Environmental Association is asking the Nova Scotia Supreme Court to quash the permit. Co-chair of the association, Neal Livingston, said the environment minister has 60 days to respond to the appeal. "Nova Scotia seems to have no guidelines. A company can walk in and be right next to a heritage river, right next to water courses and right next to homes and this is all OK with the premier, his minister and staff," he said Friday.
Other groups have opposed the proposed exploration, worried that it will lead to hydraulic fracturing – known as fracking – a process where water and chemicals are pumped into the ground.
The Nova Scotia government is allowing PetroWorth to drill a vertical well up to 1,500 metres deep, but hasn't given permission for fracking.
Lori Errington, spokeswoman for the Department of the Environment, said the approval process has terms and conditions that protect the environment and human health in the area. She said PetroWorth can proceed before an appeal is heard.
"There is nothing that stops them from drilling within that 60-day time frame," she said. If drilling begins before the appeal process is complete, Livingston said his association would file for an injunction to stop it.
http://www.cbc.ca/news/canada/nova-scotia/story/2011/11/04/ns-inverness-drilling.html
Sierra Club, Fracking Company Square Off
The Sierra Club Atlantic Chapter has called on the Nova Scotia government to ban fracking, a controversial practice used to extract onshore natural gas. Four environmentalists braved the rain outside the CORE All Energy Conference at the Cunard Centre in Halifax Wednesday to launch their "ban fracking" campaign, coinciding with a town hall session led by energy ministers from P.E.I, Nova Scotia and New Brunswick. They became engaged in a lively debate with Peter Hill, the president of Triangle Petroleum, a company that has already fracked in Hants County and wants to further explore for gas in Nova Scotia. "This is just scare mongering. I don't mind you having your point of view but please get your facts straight. We do not damage the water table," Hill told the activists. Heidi Verhool of Sierra Club said she is just presenting the facts. "[Fracking] uses immense amounts of fresh water, period. So there's a concern over water depletion. It has a potential to contaminate wells," she said. "That's not fear mongering. That's the way it is." Hill said he can guarantee the well his company drilled and fracked in 2008 in Hants County will not effect groundwater there. "There is a thousand metres of rock between where we are seeking to complete and the water table. There is no way that fracking could then lead up to the water table." Energy Minister Charlie Parker, who spoke outside the conference, said he will not take a position on a fracking ban until government staff complete a study of how other jurisdictions regulate the practice. "I'm waiting till next March when the final report comes in to see what the panel comes up with," he said. The Sierra Club will seek signatures for its "Petition Supporting a Legislated Ban on Hydraulic Fracturing for Natural Gas in Nova Scotia" until Nov. 30.
http://www.cbc.ca/news/canada/nova-scotia/story/2011/10/05/ns-sierra-club-fracking-petition.html
Province Approves Onshore Exploration Well
PetroWorth Resources has received approval to drill an exploratory well in search of oil in the Lake Ainslie area, home of the province's first onshore well in 1869. "We have carefully reviewed the application and we believe we can have environmental protection and economic development at the same time," said Energy Minister Charlie Parker. "We know Nova Scotians want assurances that oil and gas activity will not harm our province. We have confidence in our regulations and ability to regulate this industry and protect the environment." PetroWorth applied in September 2010 for approval to drill an onshore oil exploration well in the west Lake Ainslie area. The application required separate approvals from the departments of Environment and Energy. The Department of Energy approved the company's application for an authority to drill. This permits the company to drill a vertical exploration well between 1,200 and 1,500 metres in depth. It does not include hydraulic fracturing.
The approval is consistent with government's energy strategy to extract oil and gas in the province and not rely on other markets. Nova Scotia has the potential to replace coal with cleaner energy sources, which includes natural gas, and to grow the economy by selling oil and gas to other markets. "As a province, we need to examine and pursue all possible economic development opportunities available to employ Nova Scotians and keep our residents here," said Mr. Parker. "We will ensure the environment is protected as we capitalize on our natural resources for a cleaner source of fuel to balance the intermittent nature of renewable energy sources, like wind and tidal, and to create jobs."
The Department of Environment approved PetroWorth's industrial approval application on July 29, that addresses process waste management, sound limits and air quality levels. "Applications for drilling must demonstrate measures to protect drinking water and the environment," said Environment Minister Sterling Belliveau. "PetroWorth will be required to conduct water sampling prior to and following drilling the exploratory well. Construction of the well itself will be done in a way that ensures protection of groundwater." Government is currently conducting a technical and policy review of environmental impacts associated with hydraulic fracturing. No hydraulic fracturing is occurring in the province and no applications for its use are expected before the review is complete.
For more information on the review visit:
www.gov.ns.ca/nse/pollutionprevention/consultation.hydraulic.fracturing.asp
http://gov.ns.ca/news/details.asp?id=20110920001
CALGARY FIRM SEEKS N.S. HYDROCARBONS
COMPANY WILL SPEND $10.4 MILLION OVER THREE YEARS
September 14, 2011 -- A Calgary company named for an Irish saint who may have reached Newfoundland before the Vikings is travelling to Nova Scotia in search of hydrocarbons. "It excites me as a quasi-Maritimer," Darcy Spady, vice-president and managing director of St. Brendan’s Exploration Ltd., said from the company’s New Glasgow office Tuesday. St. Brendan’s has won exploration rights for three onshore blocks — about 335,500 hectares —in Malagash and Truemanville, Cumberland County, and Scotsburn, Pictou County, the province announced Tuesday.
The company, an affiliate of Triana Energy of Charleston, W.Va., has committed $10.4 million in exploration spending on the blocks over three years. There are also two additional three-year lease options available on the properties. Spady said St. Brendan’s will spend its first year gathering geological information on the blocks, which are crossed by the Maritimes and Northeast Pipeline that carries Sable natural gas from Nova Scotia to New England. "There’s not a lot of data," said the Alberta native, who worked for Columbia Natural Resources Canada Ltd. and Contact Exploration Inc. on onshore petroleum exploration projects in Nova Scotia and New Brunswick. "The geology here is very complex."
In announcing the lease agreements Tuesday, the government said they have nothing to do with the controversial process of hydraulic fracturing to extract hydrocarbons, which the province is reviewing following concerns about its environmental impacts. Spady, a petroleum engineer, wouldn’t comment on the fracturing issue except to say that Canada has some of the most stringent hydrocarbon exploration and extraction regulations in the world. "I really hope the government of Nova Scotia takes a good hard look at regulations in Saskatchewan and British Columbia before rolling something out," he said. Energy Minister Charlie Parker said provincial regulations will ensure that the environment within the blocks, including groundwater, is protected. "Each activity must have a separate application to government and demonstrate measures to protect the environment," Parker said.
Landowner approvals and public presentations are also required before any work can be done on the properties. Spady suggested the first and second years of the lease agreement will be taken up with gathering scientific data, with a test well being drilled in Year 3. He said proximity to the natural gas pipeline, and the demand for natural gas by local industries, make the project attractive. "Indigenous gas for Pictou County would make me very happy," he said, adding it would also please New Glasgow Mayor Barrie MacMillan, a vocal advocate of the commercial benefits of natural gas. MacMillan said he was delighted by Tuesday’s announcement. "It’s unbelievable, the potential," he said. MacMillan said natural gas could be used by many existing Pictou County’s businesses and institutions, including Michelin, Northern Pulp, Nova Scotia Power and the Aberdeen Regional Hospital. "There are any number of other potential users of natural gas," he said, adding that gas could also help attract new businesses to the area.
Maps and descriptions of the three blocks are available at bit.ly/nmGRCX.
http://thechronicleherald.ca/Business/1263011.html
PetroWorth wants licence extended
Public opposition to fracking delays Lake Ainslie project
By CHRIS LAMBIE Business Editor
Wed, May 4 - 4:54 AM
Fracking fears are stalling an oil company’s plan to drill an onshore well near Lake Ainslie in Cape Breton.
PetroWorth Resources Inc. says it submitted an application to the province last September to drill a vertical 1,200-metre well on a 155,000-hectare property just west of the lake. It had expected to be able to drill by last November.
"However, due to public concerns about oil and gas drilling in general and hydraulic fracking in particular, the permitting process has become protracted, resulting in delays likely until sometime in 2011," says PetroWorth’s management discussion and analysis, released Tuesday.
Fracking involves the use of water, sand and chemicals to free natural gas underneath shale rock formations.
The Dexter government recently announced a review of the controversial practice that opponents say can threaten drinking water and harm the environment. The industry maintains fracking is safe and is used effectively in other jurisdictions.
PetroWorth, which has held a petroleum exploration agreement in southern Inverness County since 2004, says it has submitted a letter to the province requesting a one-year extension on the Lake Ainslie licence.
It plans to drill "in an area where a number of historic wells have encountered oil at relatively shallow depths," says the management discussion and analysis.
"None of these wells were drilled deeper than 330 metres. Based on these historical wells and on the 2-D seismic data PetroWorth acquired in 2009, the company selected a drill target that presents the best opportunity to encounter oil in both the shallow and deeper structures."
Company president Neal Mednick couldn’t be reached at his Toronto office Tuesday for comment, nor did he respond to email.
Tracy Barron, an Energy Department spokeswoman, said Tuesday the department is still reviewing PetroWorth’s drilling application.
"We don’t have a set timeline," she said.
The decision will be made after the province has reviewed all of the information about the planned drilling, including results of aboriginal consultations PetroWorth is holding, Barron said.
"The application for an exploratory well in Lake Ainslie doesn’t include fracking; it has nothing to do with fracking."
The province’s fracking review is slated to be done by early 2012.
"There are no applications for hydraulic fracturing in the province and none are anticipated before the review is finished," Barron said.
PetroWorth, a junior oil and gas company, has several onshore properties in the Maritimes, with 100 per cent interest in approximately 388,500 hectares in Prince Edward Island, Nova Scotia and New Brunswick.
"During the year ended Dec. 31, 2010, PetroWorth had no operating revenue," it says in the document dated April 28.
Despite what it describes as "a difficult economic and investment climate," PetroWorth raised about $3.78 million last year.
"The company incurred a net loss during the year in the amount of $1,942,806."
It spent $105,999 in Nova Scotia last year on natural gas exploration.
"PetroWorth has satisfied all exploration working commitment under its exploration licences and agreements except for $3,000,000 in Nova Scotia and approximately $1.2 million in New Brunswick," says the company.
Under its exploration agreements in Nova Scotia, PetroWorth says it "has to complete exploratory work commitment of a total of $4,500,000 over a three-year period, of which $1,500,000 was completed in 2009."
PetroWorth, which says it is "actively seeking financing as well as farm-in partners to participate in future exploration," got some money back from Nova Scotia in 2010.
"During the year, the Government of Nova Scotia refunded a $100,000 deposit plus interest to the company based on the company’s exploration work in the province. As of the date of this (management discussion and analysis), the company has approximately $1,500,000 in cash."
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