St. Lawrence Lowlands, Quebec Forest Oil, operator of the Yamaska permit, focused on drilling two wells on the permit during the third quarter of 2008. The first well, the St. Louis de Richelieu well, was drilled 600m horizontally into the Utica and the second St. Francois du Lac 1H was drilled from surface and followed a similar path to the St. Louis de Richelieu well. Completion operations commenced in the fourth quarter with fracture stimulation at both wells and extended production tests are currently underway. Forest Oil will provide results prior to year-end.
On the Gentilly permit, Talisman Energy, the operator is in the process of recompleting the Gentilly #1 well in order to test the Utica and Lorraine shales. The well flowed 800mcf/d from the Utica shale on an 18-day test following a 250 ton slick water fracture stimulation. Stimulation and testing of two intervals of the Lorraine is underway and final flow-rates are anticipated during Q4FY2008.
The La Visitation well was also spudded by Talisman during the quarter. This is the second earning well on Questerre’s acreage. These earning wells will test the Lorraine and the deeper Black-River formation (conventional target) in addition to the Utica.
The third well, St. David, is scheduled to spud late Q4FY2008 with a fourth well to spud in early 2009.
On the St. Jean Nord permit, the St. Jean sur Richelieu well was spudded by Questerre to evaluate the shallower portion of the Utica shale. The well was drilled to approximately 500m and fracture stimulation is planned during Q1FY2009
There is significant upside potential with MPO's exposure to its exploratory land base and in particular to the Utica shale gas play in the St. Lawrence lowlands of Quebec. With estimated net acreage of 375,000 (total 2.1m) in the Quebec shale play within & around the most prospective portion of the fairway MPO, for a junior company, offers the greatest land exposure to the shale gas play in Quebec in addition to offering significant share price leverage if the play is proven commercial.
estimates, based on a Canadian brokers assesments of similar Canadian junior in the same space have a value accretion on an unrisked basis of some $41.42 per Questerre fully diluted share and they hold less net acrege about 345,000...
Of course price targets at this time are nonsense due to the early stage of development of the play and potential wide variances in outcomes but just goes to show the potential in the area...will be great to see some other wells come up good....
fingers crossed...
MPO Price at posting:
62.8¢ Sentiment: None Disclosure: Held
