Halifax’s Corridor Resources Ltd. has announced that Apache Canada Ltd., a subsidiary of Houston’s Apache Corporation, is giving up on unconventional gas exploration southwest of Moncton, in New Brunswick. This is a major setback for the drillers using hydraulic fracturing (a.k.a. fracking) on Canada’s east coast, since the $25 million Apache has already invested in dangerous unconventional gas drilling was expected to be supplemented by an extra $100 million.
Last year, Corridor, a smaller player in the gas industry, partnered with Apache in order to test the profitability of two horizontal trial wells into the Frederick Brook shale deposit located in the Elgin region of the province. While Corridor considers Elgin and the surrounding area to contain North America’s largest gas concentrations per square kilometer [pdf], the Will DeMille G-59 and Green Road B-41 test wells were not proving commercially viable.
When their partnership was announced, the companies were hoping to drill up to 480 wells, but with meager results from the two wells in phase 1, and a June 1st deadline to decide whether to invest additional millions or to opt out entirely, Apache balked and walked away from phase 2.
They say the truth will set you free. But sometimes all it takes is retirement.
That’s the case for Steve Campana...