NEB: Duvernay holds 76.6 Tcf of recoverable gas, 6.3 billion barrels of recoverable NGLs and 3.4 billion recoverable barrels of crude oil

Eighty-year-old Chevron Canada Limited (Chevron ticker: CVX) is moving into development on a portion of its leaseholdings in the Kaybob Duvernay area of west-central Alberta, following a three-year appraisal program.

Chevron said the program will comprise approximately 55,000 acres of its operated position in the Duvernay in the area known as East Kaybob. The program will utilize long-term infrastructure development and service agreements with Pembina Pipeline Corporation and Keyera Corporation, with service expected to be available during the second half of 2019, Chevron said.

The Duvernay is ‘one of North America’s most prospective liquids-rich shale plays’ – Chevron; ‘The play is a massive resource and a huge potential growth engine’ – Encana; NEB agrees with them

The National Energy Board of Canada released a resource assessment in September examining the Duvernay. As a result, the NEB called the Duvernay the largest unconventional oil basin in Canada.

Located near, and in some locations directly below the Montney, the Duvernay is part of the larger Western Canadian petroleum system.

Duvernay on the Rise: Chevron (CVX) Jumps in with 55,000-Acre Drilling Program

Duvernay Shale Deemed Largest Unconventional Oil Basin in Canada: NEB

Source: National Energy Board

The NEB estimates that the Duvernay’s marketable resources are 76.6 Tcf of gas, 6.3 billion barrels of NGLs and 3.4 billion barrels of crude oil. Marketable resources represent the total amount of petroleum that can be recovered from the formation, not the actual reserves nor the original hydrocarbon in place. Read Oil & Gas 360’s coverage of the NEB Duvernay assessment here.

Chevron Canada said it has a net 70 percent operated interest in approximately 330,000 acres in the Duvernay formation near Fox Creek, approximately 260 km northwest of Edmonton.

 

Other Duvernay operators also accelerating development

Emerging Canadian E&P Raging River Exploration (ticker: RRX) spud its first Duvernay well in September. The company has announced plans to add eight Duvernay wells in 2018. Raging River has approximately 144,000 net acres prospective for Duvernay light oil.

Duvernay on the Rise: Chevron (CVX) Jumps in with 55,000-Acre Drilling Program

Source: Raging River Exploration

 

Duvernay on the Rise: Chevron (CVX) Jumps in with 55,000-Acre Drilling Program

Source: Raging River Exploration

Encana (ticker: ECA) is another Duvernay player.  “The play is a massive resource and a huge potential growth engine for Encana,” the company said.

Encana reports that it controls one third of the top tier land in the condensate window. The play is also leveraged by a joint venture agreement with a PetroChina Limited Company Subsidiary.

Duvernay on the Rise: Chevron (CVX) Jumps in with 55,000-Acre Drilling Program

Source: Encana

Duvernay on the Rise: Chevron (CVX) Jumps in with 55,000-Acre Drilling Program

Source: Encana


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