Unconventional Gas a Find for Fort Nelson

For several years, a handful of North America's largest natural gas companies, including Encana, have been quietly assembling exploration acreage at Horn River in remote Northeastern BC. Now, it is moving toward development. Encana predicts it can produce a billion cubic feet of natural gas a day from its holdings in this rugged area, and this is turning into good news for the town of Fort Nelson, which has experienced tough times recently. As one of the oldest settlements in BC, the town has had its share of peaks and valleys over the years, most recently the downturn in the forest sector. Months ago, the announcement that Canfor would be closing its Polarboard mill was met with disbelief.  With it's official closure now a reality, Mayor Morey says the community is actually coping quite well. One of the reasons for optimism in this small community is new action by Encana to develop Horn River, a remote area to the north. Horn River is what's called a shale gas play, where hydrocarbon molecules are trapped in tiny pockets in the rock. Encana's Media Relations spokesman Alan Boras says turning to unconventional sources of oil and gas, such as shale or the oilsands, is essential for the future of the industry.  Encana says the company could eventually produce one billion cubic feet of gas a day - enough to heat five million Canadian homes for a year and the equivalent of about 170,000 barrels of oil, bigger than most oil sands mines. All of this economic activity will percolate to the town of Fort Nelson where the company will set up its base of operations. As infrastructure is built, and service companies establish themselves in the community, Morey is optimistic the economy here will reap the benefits.

Alicia Asquith, CJDC TV News Fort Nelson