MGM Energy, a junior explorer in the Canadian Arctic, has blazed another fresh trail by taking the first step toward a commercial relationship with a northern aboriginal organization.
Under a memorandum of understanding, MGM and the Gwich’in Tribal Council, which represents communities that signed a land claim settlement in 1992, have opened the way to evaluation of the resource potential underlying tribal lands on the Mackenzie Delta.
The Gwich’in have agreed to make five parcels of land available to MGM for geological and geophysical work.
If the results indicate the land is prospective, it is expected seismic work will take place and eventually wells will be drilled to establish the resource.
The memorandum contemplates further agreements being negotiated in upcoming weeks.
Tribal council President Fred Carmichael said “this is a true partnership” that commits MGM and the Gwich’in to cooperate in creating job opportunities.
The Gwich’in did not give up or reduce any of their rights under the comprehensive land claims agreement.
MGM is required to negotiate benefits and access agreements and the Gwich’in will be entitled to royalties on any hydrocarbons produced from lands they own.
After farming-in on a Chevron-BP license, MGM has completed a minimum exploratory drilling program of five wells and remains the operator.
—Gary Park
