Northwest Natural Gas Company (NW Natural) and Encana signed an agreement for
NW Natural to invest in a joint venture to develop gas reserves that will
provide long-term supplies for NW Natural’s Oregon utility customers over a
30-year period.
During the first 10 years of the joint venture, NW Natural
expects the volume of gas produced to provide approximately 8-10 percent of the
company’s average annual requirements for its utility customers. These gas
reserves come from the Jonah Field in Wyoming, located north of Rock Springs.
Under terms of the agreement, NW Natural will pay
approximately $45-55 million a year, for a five-year period, for a total
investment of about $250 million, which will cover expected drilling costs in
exchange for working interests in certain sections of the Jonah Field. The
sections include both future and currently producing wells.
NW Natural estimates the gas reserves will save Oregon
customers more than $50 million on a net present value basis over the life of the
agreement. The Jonah Gas Field is considered to be one of the 10-largest gas
fields in the U.S. with over 2 Trillion cubic feet equivalent (Tcfe) of proved
reserves.
About Jonah
Located south of Pinedale, Wyoming, the Jonah Field is one
of our key resource plays. The life of the Jonah Field is estimated to be from
40 to 60 years.
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