Production has begun at a rate of 18 million cubic feet of gas per day from three wells. Pioneer holds a 100 percent working interest and a 75 percent stake in net revenue from the field, assuming a 25 percent royalty to the government.
"This new play is expected to deliver strong returns and make a significant contribution to Pioneer's projected 2007 production growth in Canada of 30 percent to 35 percent," said Chairman and Chief Executive Scott Sheffield in a statement
Field operations, which are limited to the winter season, currently have capacity for 24 million cubic feet of gas per day, although that may be expanded up to 40 million cubic feet daily, Pioneer said.
The company holds about 375,000 acres in the field area with an average working interest of 98 percent. Pioneer said it has located six other potential prospects on the land; two have tested for gas and are awaiting development.
