The B.C. Oil and Gas Commission's (OGC) annual reserves report showed an increase in both remaining reserves of natural gas and oil.
The Hydrocarbon and By-Product Reserves in British Columbia report for 2012, released December 6, showed an increase in natural gas reserves to 1,138.5 billion cubic metres (40.2 trillion cubic feet (tcf) of raw gas) as of December 31, 2012, from 974.9 billion cubic feet (34.6 tcf) the previous year.
This represents the province's highest level of proven gas reserves inventory, which continues a 12-year trend of annual increases, the OGC stated.
Oil reserves increased over the same period to 120.3 million barrels from 114.5 million barrels as of the end of 2011.
For 2012, the Montney was the dominate zone targeted (73%), with drilling activity also occurring in the Horn River Basin (HRB) and the Hay River Bluesky "A" oil pool. A total of 455 wells were drilled in B.C. in 2012, the commission reported.
The unconventional Montney play trend represents 33% (13.4 tcf) of the province's remaining recoverable raw gas reserves. In 2012, 0.6 tcf was produced from the Montney, accounting for 40% of total gas production in the province.
The Horn River Basin (HRB) represents 28% (11.1 tcf) of the province's remaining recoverable raw gas reserves. In 2012, 0.1 tcf was produced from the Muskwa-Otter Park and Evie formations within the HRB, accounting for 11% of total production in the province.
The Liard Basin is a new unconventional resource in northeast B.C., with a preliminary estimated ultimate recovery of 104 billion cubic feet booked in 2012, based on production from three existing wells, two vertical and one horizontal. With promising initial results and a prospective area of a million hectares, the Liard Basin is a potentially large future gas producing region, the report stated.
As for oil, the majority of the reserve increase came from the introduction of Montney oil reserves in the Heritage- Montney "A" oil pool.
The year 2012 saw 41 new oil production wells, with 10 injector wells drilled for pressure maintenance.
