Conventional and Unconventional Gas, South Stoney Creek
The Company holds a 6 - 14 % interest in the South Stoney Creek exploration lands, operated by Contact Exploration, Inc., covering approximately 40,000 acres, and situated approximately 20 km south of Moncton, New Brunswick, within the Moncton Subbasin. This area also lies just south of the historical Stoney Creek field, which has 20 mmbo in place, and produced over 30 BCF between 1910 and 1980, and also lies along trend 50 km northeast of the Corridor McCully field development, which has an estimated 1 TCF gas in place (see basin map). The South Stoney Project also lies 25 km southwest of the Maritimes and Northeast Pipeline pipeline which transmits gas from Sable Island to New England (see infrastructure map).
Geology of the Moncton Subbasin
The Moncton Subbasin forms part of the large Maritimes Basin of Atlantic Canada, which formed during the late stages of the development of the Appalachian Mountain system. It contains mainly terrestrial with minor marine sediments ranging from late Devonian to early Permian in age. Of principal interest is the Horton Group of Late Devonian through Tournaisian age, which records the development of a lacustrine cycle within a regionally extensive intermontane basin system. Within this cycle, the Albert Formation, and specifically the Fredrick's Brook member, comprise intercalated sandstones and organic rich lake beds (mudstones) which are mature for natural gas where they have been penetrated onshore New Brunswick and Nova Scotia. Currently, commercial production from the Albert Group occurs at the McCully field in southeastern New Brunswick.