An Overview of Shale Gas Potential in Northeastern British Columbia

Numerous stratigraphic horizons and play areas in northeastern British Columbia have excellent potential for shale gas development. Focus in recent years has been on the Triassic Upper Montney and the Devonian Muskwa formations. Approximately 90% of the $2.66 billion, acquired in British Columbia land sale bonuses in 2008, can be attributed to the Montney play area and the Devonian Horn River Basin. The Montney play region accounted for approximately 49% of the 2008 bonuses and 41% were from the Horn River Basin. Over the two year period from 2006 to 2008, total PNG sales in the Montney play area increased six fold, from $218 million to $1.32 billion. Likewise, in the Horn River Basin sales increased more than eight fold over this period, from $126 million in 2006 to almost $1.1 billion in 2008.