Marvin Romanow, president and CEO of Nexen Inc. (Reuters: Jack Cusano)
Nexen Inc. is a major player in British Columbia’s Horn River basin with land holdings of 88,000 acres containg estimated reserves of 3 trillion to 6 trillion cubic feet (“Tcf”). The Company has big plans for the Horn River basin.
Nexen currently produces ~ 15 million cubic feet, and Company CEO Marvin Romanow plans to increase production to 150 to 200 MMcf by September of 2011. The Company is very active in the area with 18 wells planned and a estimated break even point between $5 to $6 per thousand cubic feet and improving. Mr. Romanow is quoted:
“Our early-stage planing for the winter of 2010-2011 is for an 18-well pad. That should take us to somewhere between 150 and 200 million cubic feet a day of natural gas in September of 2011.”
Nexen’s focus on the Horn River basin is inline with many other major producers that are divesting from conventional gas assets to focus on shale gas in the Horn River basin. EnCana, Devon Energy and others have announced asset sales and plans to invest the billions of dollars in proceeds into the Horn River basin which is one of the only active natural gas basins in North America.
Reuters: Nexen sees tenfold jump in Horn River gas output
