"Deteriorating market" forces suspension of NG production
Canadian Spirit Resources Inc. (CSRI) and its joint venture partner, Canbriam Energy Inc., have suspended their joint venture natural gas production at Farrell Creek/South Altares, British Columbia due to low natural gas prices.
According to a company’s press release, “the continued deterioration in North American natural gas prices accompanied by the further discounted price experienced by producers in northeastern British Columbia producing into the Enbridge Westcoast Energy main pipeline, has resulted in a negative netback on joint venture natural gas production at Farrell Creek/South Altares.”
With no clear indication of a near term return to a positive natural gas pricing environment, this temporary shut in of production is being viewed as a prudent business decision within the industry.
The natural gas processing facility and associated wells will be reactivated once natural gas prices return to a profitable situation.
CSRI’s net production over the past 60 days at Farrell Creek/South Altares has averaged 0.58 MMcf/day.