We continue to grow our basin-centred gas (BCG) program in western Canada. Since 2004, we have established a strong land position on both sides of the Alberta and B.C. border south of Grande Prairie and Dawson Creek as well as around Hinton. We started producing BCG from the Chinook Ridge field near Grande Prairie in late 2005. In 2006, it’s first full year of production, our BCG business averaged 20 million cubic feet of natural gas per day. Our goal is to deliver 100 million cubic feet per day by the end of 2007.
To reach our target of delivering 100 million cubic feet per day by the end of 2007, we are drilling a number of exploration and development wells across our BCG business, as well as securing infrastructure capacity by expanding a 3rd party gas processing plant near Grande Prairie and constructing a gathering system, 58-kilometre pipeline and field compression facility.
Being that BCG is sweet natural gas, it requires little processing before it is ready for domestic home or commercial use. It is a clean burning gas that is essentially of commercial quality right from the reservoir.
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