Update on East Coast Energy Inc. coal bed methane project

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STELLARTON – East Coast Energy Inc. is continuing to investigate the commercial viability of its coal bed methane (“CBM”) project in the Pictou Coalfield.

East Coast Energy Inc. is continuing to investigate the commercial viability of its coal bed methane (“CBM”) project in the Pictou Coalfield. 

Last fall the company drilled and cased two successful wells including the first ever successful horizontal well in the coalfield. Logs, sensors and drill cuttings confirmed an extensive lateral section of the horizontal well drilled within the thick gas charged coal seam. A service rig has prepared the wells for test production. Both wells have been equipped with production tubing and a down hole pump was installed in the vertical well. Pressure data has verified that the two wells are in communication, which further enhances the technical success of the drill program.

Phase 2 of the program is now complete and the rig has been released. Pressure build-up will be monitored on both wells and the company anticipates an extended production test will follow the current procedure. Production and pressure data will then be evaluated to assess commercial viability.

“Our team is very encouraged by initial test results and coupled with the strong natural gas prices the dynamics look very attractive going forward Julie Cohen, CEO of East Coast Energy, said. “We expect to establish the field as a clean, affordable, abundant local resource for future generations.”

She offered special thanks to Dundee Energy LP and the crew of the drilling rig,  she said is aptly named “Discovery”.

Further information will be provided as results are obtained and evaluated.

ECE has a Coal Gas Production Agreement in place with the Province of Nova Scotia covering 9,031 Ha (22,578 acres) encompassing the entire coalfield. A 2005 study by Sproule Associates Limited concluded that the total CBM resource potential of the coalfield held by East Coast is approximately 426 billion standard cubic feet (”Bcf”) of gas in place. Methane is recognized as the cleanest-burning fossil fuel, producing the fewest emissions of any hydrocarbon.

Organizations: East Coast Energy, Dundee Energy LP, Sproule Associates

Geographic location: Nova Scotia

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