More details are coming out. By one report Korea gas bought half interest in 10,000 acres in Horn River and 52,000 acres in Montney. Or maybe their net was that much - it wasn't totally clear.
Now remember ECA has 260,000 acres of Horn River (net) and 761,000 acres of Montney.
So I was WAY off when I was thinking they might be buying half of ECA's half of Horn River JV with Apache. That would be 130,00 acres, and Korea Gas is buying interest in less than a tenth of ECA's piece. (Together the JV with Apache has 520,000 prime Horn River acres).
And they are buying very small stake in Montney. (interest in 52k/total of 761k acres)
Original Gas in place is 150 BCF/section at Horn River and 300 BCF per section in very best parts of Montney. Korea Gas buying into 20 sections at Horn River (300 BCF OGIP) and 80 sections of Montney (2.4 TCF OGIP).
BY the way, does anyone know off hand the conversion of 1.1 million tons a year into MMCF/day of gas production? I haven't had a chance yet to look that up.
"Original Gas in place is 150 BCF/section at Horn River and 300 BCF per section in very best parts of Montney. Korea Gas buying into 20 sections at Horn River (300 BCF OGIP) and 80 sections of Montney (2.4 TCF OGIP)."
150*20 + 300* 80= 27 TCF OGIP
Sounds like Koreans getting a steal if those numbers are right.
The important thing is that they are selling half of 20% and that they are are developing that 20% more quickly (giving them some growth). Alsothat they still have 80% of their Montney and Horn river acres. If half of 20% is a boatload of gas, then 10 times that amount is REALLY a boatload of gas.