Fort Liard sale draws a blank

The Canadian government’s efforts to revive interest in the Fort Liard natural gas play in the Northwest Territories has fizzled.

No interest was shown by any E&P companies when federal Indian and Northern Affairs Canada posted a call for proposals on two parcels, the first Fort Liard offering in a decade.

The region in the southwestern corner of the NWT was a hot prospect in 1999 when Chevron Canada reported two of the largest onshore discoveries in Canada, while Berkley Petroleum and Ranger Oil also logged significant finds, triggering predictions that Fort Liard would be the catalyst for northern pipeline extensions as far as the Mackenzie Delta.

But rising water volumes and a rapid depletion of the reserves put the brakes on output and unresolved aboriginal land claims forced Anadarko to stall plans for a C$250 million gas-gathering system.

Chevron said its partners including Point North Energy (formerly Purcell Energy), which has just been granted court protection from creditors — would shelve any drilling plans in the area until aboriginal land claims were settled.

Although the claims by the Deh Cho First Nations, representing 14 native communities, are still being negotiated, the 14 leaders opened the door to the call for nominations when they endorsed renewed exploration in their territory.

Based on expectations of a positive response, the government had aimed to select successful bidders in January.

A spokesman for Indian and Northern Affairs said meetings will take place with the industry and Harry Deneron, chief of the Acho Dene Koe in Fort Liard to determine why the offering was spurned.

The suggestion among industry sources is that the land offered held little prospect of a major discovery

—Gary Park