For the past 80 years, the northeastern part of British Columbia has been home to a healthy petroleum exploration and development industry.
The importance of both Reconciliation and oil and gas in BC was recently affirmed by the historic Consensus agreement reached between Blueberry River First Nations (BRFN) and the BC government.
Shortly after the BRFN agreement was reached, the BC government and certain First Nations within Treaty 8, including Fort Nelson, Saulteau, Halfway River and Doig River First Nations, also announced a Consensus Document, bringing clarity and more certainty to both the First Nations and the oil and gas operators in the Treaty 8 region.
This means companies like Coelacanth Energy Inc. will be gearing up for drilling.
B.C’s deep gas opportunity:
To date, about 607 billion cubic metres (21.6 trillion cubic feet [Tcf]) of marketable natural gas remain to be discovered.
B.C.’s foothills and deeper plays possess the opportunity for substantial further gas reserves. Up to 23.1 million cubic metres (145 million barrels) of recoverable oil either remain undiscovered or will be recovered using improved recovery techniques.
The productiveness of a major undeveloped resource (estimated to be a total of 60 Tcf) in the Northeast is being evaluated by several producers.
One such producer is Coelacanth Energy Inc. (TSXV:CEI), a Montney-focused oil and natural gas exploration and development company with lands located in the Two Rivers area of northeastern B.C.
Coelacanth owns approximately 140 (net) sections of Montney acreage in the Two Rivers and surrounding area. It has identified 8.9 billion bbls of original oil in place and 8.6 tcf of original gas in place across these lands.
CEI 2023 Operational Plans:
CEI has two operational areas: Two Rivers West (TRW) and Two Rivers East (TRE).
For TRW, one well of a 4-well pad project has been drilled and is awaiting completion. The Company is awaiting approvals for three additional licences for the pad project. Once these licences are approved, the company intends to drill the remaining 3 wells and begin completion work. Production will commence through its current facility shortly thereafter.
For TRE, the Company has applied for licences to drill an 8-well pad project and is awaiting approvals. Engineering and design are largely complete for the construction of a battery and gas handling facility to handle anticipated future pad developments. Gas sales and emulsion gathering lines are currently being surveyed so they can be installed on an expedited basis after drilling the first pad. Pipeline and battery permits are anticipated to be received in 2023, with plans for installation in 2024.
Both the Two Rivers East and Two Rivers West projects are included in Coelacanth’s business plan to reach production of approximately 20,000 boe/d within a four-year period.
CEI Investment case:
Coelacanth is one of the largest landholders in the high GOR light oil window of the Montney Fairway.
The lands offer stacked, multizonal prospects that will allow for rapid scalability.
As of Q3 2022, the Company has $80 million of cash on hand and no debt as well as strong management and director buy-in.
For the updated corporate presentation, see www.coelacanth.ca
FULL DISCLOSURE: This is a paid article produced by the Market Herald.