Encana forced to shut in gas wellsEvery little bit helps.
Slew
OTTAWA (Dow Jones)--A provincial agency that regulates Alberta'senergy resources has ordered EnCana Corp. (ECA), Canadian NaturalResources Ltd. (CNQ) and a unit of Paramount Energy Trust (PMT.UN.T) totemporarily shut-in 33 million cubic feet per day of natural gasproduction, saying it may threaten nearby oil sands resources.
Alberta's Energy Resources Conservation Board announced itsdecision late Thursday, saying that 158 gas wells located northwest ofFort McMurray "may present a significant risk to future insitu bitumenrecovery and must be shut in, pending the outcome of a full ERCBhearing."
The 158 wells owned by EnCana, Canadian Natural and Paramount mustcease production by the end of the month, the ERCB said. A final publichearing over the wells is scheduled for early 2010.
The ERCB issued the shut-in order at the request of Total E&PCanada Ltd., a unit of Total SA (TOT) and Sunshine Oilsands Ltd., aprivately owned oil sands development company based in Calgary. Totaland Sunshine argue that the natural gas wells are too close to oilsands reservoirs, and drop the underground pressure needed toefficiently extract the oil sands.
-By Edward Welsch, Dow Jones Newswires; 613-237-0669; edward.welsch@dowjones.com