| News Releases News Release Archive | June 20, 2002 MAJOR GAS DEVELOPMENT IN SASKATCHEWAN SaskEnergy's transmission subsidiary, TransGas, is working together with the energy industry to develop one of the most significant natural gas reserve areas to be discovered in the province in the last 10 years. This recent discovery, known as the Shackleton Reserve Area, is located northwest of Swift Current and is expected to add .5 Trillion cubic feet to Saskatchewan's natural gas reserves - nearly a 20 per cent increase from today's reserve estimates. TransGas will be investing a total of $9 million to extend its pipeline network into this major new area to allow access by producers. Profico Energy of Calgary is one of the producer companies investing in the Shackleton Reserve Area. "Natural gas finds of this size don't happen every day, so this is exciting news for our industry and for Saskatchewan," said Clayton Woitas, President of Profico. "The investment by TransGas will allow for increased activity in this area by companies such as ours, bringing more jobs and increased private-sector investment into the province." "This is a significant investment for TransGas into a brand new area without a pipeline infrastructure," Crown Investments Corporation (CIC) Minister Maynard Sonntag said. "This is a great example of how we work with producer companies to make a project like this happen. It has always been TransGas' policy to work closely with producers to tie them into our infrastructure as quickly as possible" "Part of our long-term approach to Investing in Saskatchewan is to work with the natural gas industry to develop reserves and create opportunities for growth," Ron Clark, President and Chief Executive Officer of SaskEnergy/TransGas said. "In the last decade, SaskEnergy and TransGas have invested $699 million to support and grow the natural gas industry and build a healthy and competitive distribution and transmission business." Exploration was done in this region in the 1960s, but this relatively shallow reserve area was missed as producers were drilling for much deeper oil plays. New drilling techniques and better geological information lead to the discovery of the Shackleton reserve. Upon receiving the necessary approvals, pipeline construction is scheduled to begin this summer with gas production expected to be on-line from the area later this fall. Producers will pay transmission tolls to TransGas for use of the pipeline system, resulting in annual revenues for TransGas of between $2 million initially and as high as $4 million annually once the area reaches full production. As with all drilling-related projects, the Shackleton development will be subject to review under The Environmental Assessment Act of Saskatchewan Environment. For more information, please contact: Dean Reeve Clayton Woitas 
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