Transeuro Energy Corp. - Canada - Shale gas at Beaver River

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Shale gas at Beaver River

Transeuro has identified the potential for a significant enhanced shale gas play in the shallow sections of the field, in 3 disctinct horizons and has started a multi-well program to appraise the size and commercial viability of the resource:

Mattson shale from around 1200 - 2100m with A-7 producing
Besa River Shale from around 2000 - 3000m with A-2 producing
Golata and Muskwa shales from 3000m - 4000m

The initial phase of the Beaver River farm in commitments was completed during the winter of 2005/06. Re-entry and perforating operations were conducted in three old wells, the A2, A6 and B2. Wells A2 and A6 were successfully re-completed to the Mattson formation and hydraulically fractured to stimulate production. Well A-2 has been on production since March 2006 with gas rates increasing gradually with time from 1.6 to 4.5 million cubic feet per day (MMcf/d). Well A-6 produced successfully at around 0.5 MMcf/d prior to fracturing but following a small fracturing operation, has struggled to clean up sufficiently to flow at commercial rates. A larger slickwater fracturing operation is planned. Operations on well B-2 were suspended due to poor cement isolation between casing and the wellbore was retained for a future deep sidetrack into the Nahanni.

The first shallow well, the A7, was drilled in the north of the field to target the same intervals producing successfully in the A-2 well. Following drilling and mechanical problems the well failed to reach the target and was completed and fractured in the Mattson formation. The well is currently on production. A second shallow well, the B3, was drilled logged and cased by the end of March 2007. Different small hydraulic fracturing methods were used and obtain gas from all 4 intervals, but not at commercial rates. Larger slickwater fracs are now planned to achieve commercial rates.

In Sept 08 the company re-entered the A-5 well, abandoned the Nahanni and perforated and stimulated in the Golata shales. A thin limestone interval was acidized and tested 10 mmcf/d with a wellhead pressure of 3000 psi. The well was put on production and flowed steadily at 5mmcf/d and is performing more as a conventional well than a typical shale gas well. As the pressure declines it is hoped that the limestone will act as a pathway for the surrounding shale gas to produce into the well at a commercial rate.