Meteor Creek Resources Inc. of Toronto will begin drilling an exploratory natural gas well in Bear River early this fall. Potential for a significant natural gas find in the area has been known for some time; after extensive evaluation of seismic data, the company now feels confident enough to drill a test well.
"There is tremendous promise for a significant gas find in this area" said David Fisher, director of Meteor Creek Resources."Going by our seismic interpretation, we could be looking at reserves in excess of one trillion cubic feet of natural gas in place.. By contrast, the Sable Island project has three to four trillion feet of recoverable gas."
The Bear River Prospect is located within a 77,226 hectare (175,984 acre) permit near Souris. The permit is held by Claude Anger, through his company Consultants AGREN Canada Inc. Anger is a geophysicist and engineer who has had a long standing interest in natural gas development in the eastern end of the province. Meteor Creek, by drilling the well, will earn a 50 per cent interest in the permit and will be the project operator.
Drilling will take place in what is now a farmer's field on the eastern side of Highway 308 (St. Charles Road) on land owned by Derrill Peters. Mr. Peters will receive a rental fee for the use of his property but has no financial interest in the project.
The provincial government is considering a request by Meteor Creek Resources to grant a five year royalty holiday, should gas be found. Permit holders are required by statute to pay a royalty to the province on natural gas that is extracted on the Island. The province is also being asked to guarantee the permit holder access to any pipeline that would be constructed on the Island.
"Clearly, this is a very exciting time for this province," said Premier Pat Binns. "Our government is committed to finding less expensive, more environmentally friendly sources of energy. With the development of Sable Island and the construction of natural gas infrastructure through our region, there is renewed interest in natural gas resources in our province. It is a good sign when a private company sees the potential to develop natural gas and is willing to spend the money to do the exploration."
"People have suspected for a long time that there is a significant amount of natural gas in this area," said Mike Currie, Minister of Development and Technology.
" With the new technology and the willingness of Meteor Creek to take the risk, we could be seeing an important development - for Kings County and for the whole province."
The company hopes to begin drilling as early as October. The initial drilling is expected to take between 35 and 40 days.