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  • margin321 margin321 Mar 2, 2010 7:10 AM Flag

    Horn River and Montney

    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.

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    • Thanks Margin. Is this right?

      "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.

      Can I get a deal like that?

    • Horn River deal is 24,710 acres not 10,000 as you stated

      Montney deal is 128,495 acres not 52,000 as you stated


      “The agreements cover 10,000 hectares of Horn River lands and an additional 52,000 hectares of prospective Montney land”

    • "conversion of 1.1 million tons a year into MMCF/day"

      Hey Margin, this is the best I can figure it.


      1 ton LNG= 48,700 cu. ft

      1 million tons/yr= 48.7 bcf

      or 133 mmcf/d

      so 1.1 million tons would mean 133(1.1) =====>146.3 mmcf/d

      conversion numbers from here

      http://www.natgas.info/html/natgasunitsconversion.html


      keep in mind tonnes ain't the same as tons!

      And 1TCF of gas could power the average family vehicle around the earth (40 000 kilometres) in excess of 10 million times.

      http://www.chemlink.com.au/conversions.htm


      so with 1 TCF, a million people could have enough fuel to go 400,000 km (248,000 miles) in a lifetime and the Koreans have enough OGIP from this deal now for 27 times that?

      So $1.1 billion for a lifetime of auto fuel for 27 million people equivalent works out to $40.74 ea.

      shouldn't shareholders get a chance at a deal like that if EnCana wants to sell the farm?

 
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