Will a PC government allow a junior oil and gas company to unlock its onshore gas potential near Sussex?

Will a PC government allow a junior oil and gas company to unlock its onshore gas potential near Sussex?

A change in government gives Corridor Resources hope it can frack once again in New Brunswick

Fracking might not be dead in New Brunswick after all, and that’s good news for Corridor Resources Inc.

With the Progressive Conservatives taking power in November 2018, Premier Blaine Higgs has proposed lifting a moratorium on hydraulic fracturing that’s been in place since 2014. However, the premier isn’t proposing to lift it for the entire province. For now, it would only be allowed in the Sussex area. That’s important for Halifax-based junior oil and gas company, Corridor Resources. Its McCully shale gas field is in the Sussex region and has produced 57 billion cubic feet of natural gas since it was discovered in 2000.

The company says it has 11 locations in the Hiram Brook formation where the McCully field is located and it would like to drill on them. However, because all the locations need to be fracked to be productive, the gas is stranded―unless Premier Higgs gets the moratorium lifted for the Sussex area. “We are hopeful this will result in the permanent removal on hydraulic fracturing in Corridor’s key operating area,” the company said in a Dec. 18 press release.

The Hiram Brook formation isn’t the only natural gas assets Corridor has in the Sussex area. It also has the Frederick Brook shale. So far, 13 wells have been drilled into that shale and a 2016 resource study assessed the potential there at 52 trillion standard cubic feet. However, the company hasn’t classified any of it as recoverable. It says it’s looking for a joint venture partner to bring capital and shale gas expertise to conduct a pilot project to evaluate Frederick Brook.

“As the scope and scale of the opportunity in the Frederick Brook shale represents a significant upside potential for Corridor and its shareholders, this will be Corridor’s top objective moving forward,” the company said in the release.

Leave a comment

Your email address will not be published.


*


ADVERTISEMENT