The formation is composed of
siltstone and dark grey
shale, with
dolomitic siltstone in the base and fine grained
sandstone towards the top. Montney has one of lowest full cycle cost of gas in North America - below USD $3/Mcf with NGL uplift.
Gas is produced from the Montney Formation in both
British Columbia and
Alberta. Major operators include Seven Generations Energy Ltd., Progress Energy Canada Ltd. (a subsidiary of Malaysia's
PETRONAS), Painted Pony Energy Ltd.,
Royal Dutch Shell plc,
Encana Corporation,
Murphy Oil Corporation,
ARC Resources Ltd., and
Advantage Oil & Gas Ltd. and
oil is produced from the formation in
Northern Alberta.
Horizontal drilling and extensive
fracturing process is necessary to have the fluid flow through the low
permeability siltstone.
Shale gas extraction emerged in the late 2000s in the distal facies of the formation's western extent. ==Hydraulic fracturing in Canada==