Vancouver, B.C., Canada-based Stikine Energy sees profit potential in the production of frac sand from silica sources in northeastern British Columbia. The company said frac sand represents a strategic opportunity in the market and a first for what is shaping up to be a massive gas play in region.
According to the company’s website, “It is becoming apparent that there is enormous gas potential in the Horn River Basin, Cordova Embayment, Slave Point Platform and Montney Basin. Development of those areas is entirely reliant on simple sand products to be injected into hydro-fractured (frac) gas wells to facilitate the flow of gas from shales and other rock formations. Billions of dollars are being spent to develop and test the gas potential and for infrastructure in the area. Since the play is relatively new, frac sand products are currently being imported in large quantities from great distances to complete the early wells. Gas exploration companies and well developers are paying hundreds of dollars per tonne for frac sand delivered to the well head, the bulk of which is cost related to shipping thousands of kilometers.
“As more and more unconventional gas is tested and developed around North America, supplies of appropriate frac sand will be constrained, and as fuel prices rise delivery costs from far away locations will cause prices for frac sand to rise dramatically too.”
Stikine said is committed to becoming a dominant frac sand producer and supplier to British Columbia's shale gas industry. The Nonda Project is located approximately 150 km west of the Horn River Basin and the Angus Project is approximately 200 km south of the Montney Basin, with major infrastructure nearby. Both projects are in the heart of major gas plays but opportunities to supply beyond British Columbia into other markets may also exist.