Shallow natural gas has been a core development area of Enerplus since the late 1990s. The shallow natural gas formations in southern Alberta and southwest Saskatchewan consist of massive, tightly packed sandstone that covers an area of over 10,000 square kilometres. These zones are typically less than 800 metres in depth with most production coming from the Milk River, Medicine Hat, and Second White Specks producing zones.
Our shallow gas assets account for about 20% of total production but with the current natural gas price outlook, our projected shallow gas spending in 2011 has been reduced to approximately $10 million. For the most part we plan to drill infill wells where our most attractive opportunities exist.