Vancouver-based Canada Energy Partners, which has a 50% working interest in the project, has confirmed the start of coalbed methane gas production drilling near Hudson’s Hope.

It says 5 wells will be drilled as part of a previously announced development program. It also includes the connection of 3 existing wells, construction and installation of gas treating and compression facilities, a pipeline and connection to Spectra Energy’s trans-continental pipeline and the initiation of natural gas production from 8 wells.

The Peace River CBM Project has 315 potential well locations and, since 2001 has resulted in a $35 million investment. Seventeen wells have already been drilled, the pipeline right-of-way cleared, the gas plant site completed, and the gathering lines to the 8 natural gas wells are nearly completed.