Resource World Magazine

posed by Apache and Chevron; The Coastal GasLink Project – TransCanada Corporation was chosen by Shell Canada and its joint venture partners to design, build, own and operate a proposed pipeline project to serve LNG Canada. Natural gas will come from northeastern BC's Montney, Horn River and Cordova shale gas basins and other areas of the Western Canada Sedimentary Basin; The Prince Rupert Gas Transmission project – TransCanada was also selected by Progress Energy (the successor by amalgamation of Petronas Carigali Canada Ltd. and Progress Energy Resources Corp.) to design, build, own and operate a $5-billion pipeline to serve the proposed Pacific Northwest LNG facility; Spectra Energy – has signed a project development agreement with BG Group to develop a new natural gas transportation system from northeastern BC to serve BG Group's proposed LNG export facility in Prince Rupert; The Pacific Northern Gas Pipeline – an existing 10-inch natural gas pipeline, will supply natural gas to the Douglas Channel LNG project. China has already raised the price issue. China National Offshore Oil Corp. executive vice-president, Luo Weizhong, said BC faces competition from conventional gas suppliers like Russia, with whom China has already signed contracts for the pipeline gas equivalent of 50 million tonnes of LNG, more gas than could be supplied by all of the BC LNG projects. "If LNG is not able to complete with pipeline gas, its role will be marginal," he said at the Vancouver LNG conference. But the BC government says global LNG demand is increasing and the 'demand vs. supply' conditions worldwide support accelerated LNG growth." "There is a projected gap in supply to meet projected demand, especially when growth in Asia is considered," the spokesman said." According to the BP Energy Outlook 2030 – January 2013, the natural gas supply and demand gap in the Asia Pacific Region is projected to be approximately 290 million tonnes oil equivalent by 2030. There is ample room for BC to enter this marketplace as long as development happens in a timely fashion. "Demand will increase as the energy demands continue to escalate in Asia. New contracts will be required to serve this demand. This is the opportunity in front of the LNG projects being proposed now in BC." Betsy Spomer, senior vice-president at the BG Group, another LNG proponent, said BC's geography poses a challenge not found elsewhere – a gas resource separated from the proposed LNG terminals by challenging mountain ranges. Nevertheless, the BG Group has partnered with Spectra Energy to build a pipeline that will follow northern river valleys to the ocean and then travel south to Prince Rupert. Despite the challenges, she said, the advantages outweigh the disadvantages. "The resource is phenomenal. Canada could be the next Australia." n 56 www.resourceworld.com AROWAY ENERGY DRILLS EXPLORATION WELL AT LITTLE BOW Aroway Energy Inc. [ARW-TSXV; ARWJF-OTCQX] has drilled and cased an exploration test well on its 100%owned and operated property in the Little Bow region of southern Alberta. The 1,500-metre light oil exploration test well, targeted and encountered prospective deep horizons as well as a shallower upper Manville target. Aroway is managing the exploration risk of this well by farming out a portion to an industry partner, resulting in Aroway paying 63.5% of all costs associated with this well to maintain a 75% interest of all the revenue from this oil exploration test well. Aroway will commence production testing when ground and local municipal conditions permit. Chris Cooper, President and CEO, said, "We are very encouraged with the logs from this exploration test well which is a step-out from the prolific Little Bow Upper Manville Pool, which has produced over 12 million barrels of oil to date and is currently in the process of tertiary recovery. Heading into spring break-up, we will be finalizing our 2013 exploration and development program and look forward to production testing our new well in Little Bow." Aroway Energy is a Western Canadian junior oil focused production and exploration company participating in oil development and exploration prospects in Alberta and Saskatchewan. Through a joint venture partnership in the Peace River Arch of Northern, Alberta, Aroway and its partner have assembled a land package of 110 sections (70,400 acres) with 3D seismic coverage over almost all of its lands. All exploration and development targets are in close proximity to tie-in, gathering and plant infrastructure, controlled and owned by Aroway's joint venture partner. The company also has 100% operated working interest on a 3D seismically defined exploration property in central Alberta and a highly economic heavy oil producing property in West Hazel, Saskatchewan. n EMERALD BAY STARTS TAYLOR-INA DRILLING Emerald Bay Energy Inc. [EBY-TSXV] has provided an update on recent events in Medina County, Texas. Through its 25% ownership of Production Resources Inc., the company is moving forward with a second multi-well drilling program in the Taylor-Ina field of Medina County. Twelve wells (three net wells) are planned through the second quarter of 2013. The JN Wilson A Well 1B reached total depth on March 12, 2013, and the open-hole log was consistent with expectations and consistent oil shows were observed confirming the target Olmos sands. The wells will be drilled and completed in four well packages. Completion operations are scheduled to begin April 8, 2013, with production operations expected to begin the week of April 22, 2013. The drilling locations are considered infill and are direct offsets to existing company production. n APRIL 2013

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