The Montney tight gas resource play has been recognized as a resource of impressive proportions. Pay Zone columnist Chris Feltin looks at the numbers behind the surging activity in northeast British Columbia and northwest Alberta.

There has been substantial interest recently by oil and gas companies and investors alike in the Montney tight gas resource play. When the size of the resource is considered, it is not surprising that numerous companies have rushed to stake their claim. This is evidenced by the recent run-up in land prices over this play (Figure 1), where average prices have increased to $900 per acre in 2007 and 2008 YTD.

Montney resource location

The Montney natural gas fairway extends from west central Alberta, northwest parallel to the foothills, into B.C. toward Fort St. John (Figure 2). While production from the Montney Formation is nothing new in Alberta, where both oil and natural gas have been produced from the conventional portions of the Montney, the recent excitement has focused in the Dawson and Swan area of B.C., where the reservoir is “tight” and more challenging to produce.

Pages: 1 2 3