Nexen’s conventional natural gas and CBM production areas in Canada.

Optimizing Value of Our Canadian Resources

Nexen’s Canadian production (excluding the Athabasca oil sands and northeastern British Columbia shale gas) consist of conventional natural gas and coalbed methane (CBM), which together accounted for 25 billion cubic feet (bcf) of natural gas production in 2012. Conventional properties in southern Alberta and Saskatchewan accounted for just over half of our Canadian natural gas production with the remaining coming from our CBM developments in central Alberta.

Nexen’s strategy is to continue optimizing value from our conventional and CBM producing assets in Canada. As part of this effort, we’re identifying more effective ways to manage our day-to-day business to ensure secure, reliable production without sacrificing our high standards for safety and environmental responsibility.

Our Business

Natural Gas
Nexen’s southern Alberta and Saskatchewan resource play has been operating for more than 50 years. With more than 2,500 wells located in the Medicine Hat/Hatton area, our average 2012 production was 35 million cubic feet per day (mmcf/d). We are focused primarily on sweet dry gas wells in the Medicine Hat, Milk River and Second Whitespecks formations.

An appraisal and development plan is currently underway for the Crossfield Viking Project, a liquids rich sweet gas project northeast of Calgary. Three horizontal wells have been drilled to date with the data collected during drilling, completions, testing and production phases being used to evaluate and optimize future well design and development plans. View the Crossfield Viking Project drilling locations (PDF 2.0MB).

Coalbed Methane
Approximately 41% of our current Canadian natural gas is produced from our Mannville CBM developments at Corbett, Doris and Thunder in the Fort Assiniboine area of central Alberta. In addition, we have CBM operations in the Wetaskiwin area with 50 wells producing sweet dry gas from the Horseshoe Canyon CBM formation. In 2012, our CBM assets produced on average 31 million cubic feet per day (mmcf/d).