Chevron Corp. (NYSE: CVX) has successfully concluded the initial exploration phase by its Canadian subsidiary, Chevron Canada Ltd., in the Kaybob area of the Duvernay play, located in west-central Alberta, Canada.
Chevron Canada successfully concluded the initial 12 well exploration drilling program in the liquids-rich portion of the Duvernay shale play. Five wells have been completed and are tied into production facilities, and an additional four wells are waiting on completion and tie-in. The company’s acreage is well positioned in the condensate-rich and volatile-oil portion of the play. Liquids yield for the completed wells range from 30% to 70% with initial production rates up to 7.5 million cubic feet of natural gas per day and 1,300 barrels of condensate per day.
“Early results of our Duvernay exploration program are encouraging,” George Kirkland, Chevron vice chairman, said in the release. “This discovery creates a foundation for future growth in Canada.”
“Well performance and condensate yields exceeded our expectation and strengthen our plans going forward. Near term plans include transitioning to a two-rig drilling program to optimize well and completion design, and full field spacing requirements,” Jeff Shellebarger, Chevron North America E&P Co. president, said in the release.
With the acquisition of Alta Energy Luxembourg S.à.r.l. and affiliates’ acreage announced earlier this year, Chevron now has some 325,000 net acres in the Kaybob area of the Duvernay play.
Chevron Corp. engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. The company is headquartered in San Ramon, Calif.