Project History

The Princeton Basin is centered on the town of Princeton in the British Columbia Interior between Kelowna and Vancouver, a region historically known for its logging, mining and ranching. Petrobank is 60 percent owner and operator of the play, which includes the rights for both coal and coalbed gas (CBG) covering a total area of 38,000 acres. Princeton is a relatively small basin but offers extraordinarily thick coals, which is the principal resource attraction. The potential economics of this project are further enhanced by Terasen’s natural gas pipeline that runs through the basin, creating takeaway capacity for any commercial production.

Due to the frontier nature of this basin, Petrobank has been developing this play slowly, analyzing all available data and building relationships with the local community.

In 2004, Phase One of the project involved the drilling of a single evaluation well 4.5 km south of Princeton. Core and chip samples from the thick coals encountered confirmed previous coal analysis and mapping, which indicated an initial resource estimate of 500 billion cubic feet (bcf) of gas-in-place. Production testing following appropriate well stimulation is expected to provide data on permeability and gas saturation of the coals required to plan a CBG pilot project.

During Phase One, Petrobank was proud to develop a close relationship with the people of the Town of Princeton through regular updates about the project and initial findings. Through regular communication, Petrobank learned about the community’s desire to ensure Swan Lake continues to thrive as an important eco-recreational space for the entire community. Although the company has drilling rights on lands surrounding Swan Lake, it currently has no plans for operations in the area. Conversations with members of the community represented by the Town and the Upper Similkameen Indian Band (USIB) were helpful for Petrobank’s understanding of the area as a valued community resource. After learning this, Petrobank concluded that any future drilling in the area can be conducted in such a fashion that ensures Swan Lake and surrounding land remain undisturbed.

For Phase Two, Petrobank is preparing to drill two more evaluation wells in the basin in 2008 to demonstrate commercial gas rates from the coals in this long-term development project. To date, the company has met with local and provincial government to answer questions and provide updates on drilling plans. A community open house will be scheduled once an activity timeline is finalized. Recent updates on the project can be found on the What’s New page.