CALGARY, Alberta, Nov 1 (Reuters) – Shell Canada Ltd. (SHC.TO: Quote, Profile, Research) said on Wednesday that a gas find it made in 2005, touted as one of Western Canada’s largest in recent years, appears to be much smaller than originally thought.
Shell Canada, target of a C$40-a-share bid from parent Royal Dutch Shell (RDSa.L: Quote, Profile, Research), said a recent follow-up well to the Tay River discovery in western Alberta confirmed the presence of gas, but not at commercial quantities.
The company said recent pressure information from the discovery well suggests that the structure contains original raw gas in place of 220 billion cubic feet.
That is down from initial estimates of 650 billion to 850 billion cubic feet.
Shell Canada said the well is producing at rates of 90 million cubic feet a day. However, it does not plan any more drilling on the original Tay River structure, it said.
($1=$1.13 Canadian)
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