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News Release

FOR IMMEDIATE RELEASE 

ERCB ISSUES INTERIM BITUMEN CONSERVATION DECISION
Decision shuts in natural gas production from 158 wells on an interim basis

Calgary, Alberta (October 15, 2009) The Energy Resources Conservation Board (ERCB) has issued Decision 2009-061 which concludes that production of natural gas from 158 wells may present a significant risk to future in situ bitumen recovery and must be shut in, pending the outcome of a full ERCB hearing. The gas wells to be shut-in are located approximately 100 km north west of Fort McMurray.

This interim ERCB hearing dealt with applications from Sunshine Oilsands Ltd. and Total E&P Canada for the interim shut-in of gas production from certain wells. The gas wells that have been shut-in on an interim basis are licensed to Canadian Natural Resources Limited, Paramount Energy Operating Corp, and EnCana Corporation.

Decision 2009-061 orders the interim shut-in of gas production from the 158 wells effective October 31, 2009. Production from those wells will remain shut-in pending the results of a final ERCB public hearing on this matter, which is expected to be held in early 2010. The estimated production of the shut-in natural gas is 940 thousand cubic metres per day (33 million cubic feet per day).

Gas production from these wells may lead to a risk to bitumen recovery. The geological strata at issue contain natural gas that is in contact with potentially recoverable bitumen. As this gas is extracted, there is a drop in pressure within the gas pools. Gas production in these circumstances may pose an unacceptable risk to bitumen recovery using thermal techniques, such as steam-assisted gravity drainage (SAGD).

The ERCB interim hearing on this matter was a written process from July 20 to August 31, 2009.

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For more information, please contact:
Bob Curran
ERCB Communications    
Ph: 403-297-3392    
Email: bob.curran@ercb.ca

NR 2009-27