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News Release 2011
 
Business Info

29NOV2011

JGC Acquires Shale Gas Project Interest from Nexen, Canada

 

Yokohama, JapanJGC Corporation is pleased to announce that through INPEX Gas British Columbia Ltd.(*), it has agreed in principle to acquire a 40% participating interest in the shale gas projects in the Horn River, Cordova and Liard basins from Nexen Inc. (Nexen), a Canadian exploration and production company. This is the second unconventional oil and gas project JGC has become involved in, the first being a share oil development and production project in the Eagle Ford region of southern Texas, USA . This transaction is subject to the satisfaction of certain conditions precedent.
(*) INPEX Gas British Columbia Ltd. (INPEX) is jointly established by INPEX CORPORATION and JGC Corporation with the purpose of promoting the shale gas projects in the Horn River, Cordova and Liard basins

The Horn River, Cordova and Liard basins are located in the northeast corner of British Columbia, about 1000 km north-northwest of Calgary, Alberta, Canada. These three basins are considered to contain high potential of large-scale shale gas reserves. The joint venture lands are comprised of Horn River (366 km2), Cordova (333 km2), and Liard (517 km2), forming relatively large portions of each basin. In the Horn River basin, production has already started and it now produces shale gas of approximately 51 million standard cubic feet per day (8,500 barrels of oil equivalent per day.) In the Horn River and Cordova basins, we envision a full-scale production of the shale gas, is expected to be up to 1,250 million standard cubic feet per day (200,000 barrels of oil equivalent per day.)

In the Horn River and Cordova basins, INPEX and Nexen will proceed with appraisal and development of the resource. In the Liard basin, INPEX and Nexen will conduct the necessary evaluation activities for further shale gas development.

JGC Corporation has been actively pursuing oil and gas development businesses since it acquired the operatorship of oil and gas fields in Louisiana, USA in 2007. Last year, JGC decided to participate in an exploratory prospect in Louisiana, which led to the discovery of a large natural gas column this year for which production is scheduled to start in February of 2012. JGC's first unconventional oil and gas development project involved the acquisition of shale oil assets in the Eagle Ford region of southern Texas, in August of this year.

This project marks JGC's first foray into the shale gas development business, and is therefore made particularly significant not only as an important milestone in JGC's resource development business, but also as a valuable collaboration with INPEX CORPORATION. This project marks a new opportunity for JGC to develop technology and know-how in the shale gas development and management sector.

   
 
Basin: Horn River (366 km2)
Cordova (333 km2)
Liard (517 km2)
Participating Interest: Nexen 60% (operator)
INPEX Gas Bitish Columbia Ltd. 40% (*)
(*) INPEX CORPORATION 82%, Canadian subsidiary of JGC Corporation 18%
Location: 1000 km north-northwest of Calgary, Alberta, Canada



 

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