Following up on some recent transfer activity in the very far north regions of British Columbia, BOE Intel subscribers will have noticed 16 well licences got transferred on February 12, 2024 from Chevron to Paramount.
These well licence transfers follow up on the Chevron/Paramount mineral rights transfer that we had observed at the beginning of January, which appeared to be the precursor transaction to the announcement from Woodside Energy Group that it had entered into a JV with Paramount Resources in the Liard field.
Figure 1 – 16 licences transferred from Chevron to Paramount
The current production from these licences is zero, but several of these wells have fascinating production history. There is one well in particular that was an enormous producer for the three and a half years that it was on production. This well produced over 29 BCF in 3.5 years, including a peak monthly rate of over 55 mmcf/d. The production plot from the well is below.
Figure 2 – Production profile (UWI 200C016K094O1200)
This well and some of the other tests from the Liard Basin and Horn River Basin certainly confirm that there is a large supply of natural gas in the area. Whether it ever gets developed given the remote location is another matter, but with LNG projects in Canada finally on the cusp of exporting LNG, the likelihood of further activity in this area is probably higher than it might have been 5 years ago. To gain access to our well licence transfer tool, subscribe to BOE Intel.