Japan’s largest oil and gas exploration and production company is currently testing various spots in northeast British Columbia for the purpose of shale gas exploration.
INPEX Corporation, along with Nexen Energy ULC—a subsidiary company of the state owned China National Offshore Oil Corporation (CNOOC)—entered into the joint study in March of this year, according to a press release, “to evaluate geological characteristics of the areas, by analyzing properties of rock samples extracted from shale reservoirs marked for development.”
The Japan Oil, Gas and Metals National Corporation—a government administrative institution—will provide financial support for the exploration project.
The Horn River Basin in northeast B.C. is a relatively new natural gas discovery, and the largest known shale gas field in Canada. According to a recent report from the BC Oil and Gas Commission, the area presents “unconventional” opportunities for exploration.
“The advent of horizontal drilling combined with multi-stage hydraulic fracturing increased interest in unlocking the potential of shale gas.”
The report further outlines that production in the Horn River Basin has been steadily increasing, and as of 2012 represents 28% of the province’s remaining recoverable raw gas reserves. In 2013, the report stated that 291 horizontal and 78 vertical wells had been drilled across the basin targeting shale gas deposits.
Shale gas is a natural form of gas found in sedimentary rock usually located well below the surface, sometimes up to 2,000 metres.
