Structuring shale gas development agreements

In the past few years the international oil and gas industry has committed billions of dollars to the development of shale hydrocarbon opportunities in Canada, primarily in British Columbia.

Rich finds

Two areas in northeastern British Columbia have caught the interest of international producers. These areas are also uniquely positioned to meet Asian energy demand as they are near the closest North American port to Asia. This can save approximately 60 hours of transpacific sailing time, relative to ports in California.

The Horn River Basin play covers around 1.28 million hectares with estimated reserves of 109,000 billion cubic feet of gas, of which 29% is conventional gas and 71% is shale gas. The Montney play is located in the Peace River Regional District and encompasses seven municipalities.

Pat Maguire and Vivek Warrier are partners at Bennett Jones LLP. Bennett Jones is a leading Canadian law firm with over 400 lawyers in offices throughout Canada and in the UAE.