JOGMEC, Mitsubishi and Encana Sign Deal for Cutbank Ridge Development in Canada

JOGMEC, Cutbank Dawson Gas Resources Ltd. (CDGR), a Canadian subsidiary of Mitsubishi Corporation (MC) and Encana have signed a joint “Research Agreement” with for the Cutbank Ridge Partnership (CRP) unconventional gas development.

JOGMEC, CDGR and Encana will conduct integrated core analysis, geomechanical and seismic studies by using data from the CRP unconventional gas asset in the Montney formation of northeastern British Columbia, Canada.

JOGMEC is carrying out R&D in exploration and developmental technologies mainly for conventional reservoirs. JOGMEC believes R&D for unconventional reservoirs is becoming more important as unconventional oil and gas development has increased substantially in North America. Since some of the existing technologies for conventional reservoirs cannot be applied directly due to the nano-scale pore structure of unconventional reservoirs, horizontal well and hydraulic fracturing technologies are commonly used for unconventional gas development. R&D needs for unconventional reservoir have been and will be increased.

JOGMEC, CDGR and Encana expect to increase the asset value by carrying out this joint research to achieve optimized and effective unconventional gas development.

JOGMEC is expecting to contribute to the Japanese oil and gas industry by increasing the industry’s knowledge of unconventional gas development.

Encana is Canada’s largest and the North America’s 3rd largest natural gas producer and is the operator and Managing Partner of CRP, formed to develop the unconventional resource that includes the Montney formation located in northeastern British Columbia, Canada with leading-edge technology.

CDGR has acquired a 40% interest in CRP and is working on natural gas development with Encana, who owns a 60% interest in CRP with its wholly owned subsidiary.

JOGMEC has supported CDGR with loan guarantee.

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LNG World News Staff, April 3, 2013; Image: JOGMEC