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Vol. 10, No. 43 Week of October 23, 2005
Providing coverage of Alaska and northern Canada's oil and gas industry

Husky Energy, Paramount Resources set to drill in NWT

Husky Energy and Paramount Resources have given some impetus to this winter’s drilling program in the Northwest Territories.

The major attention is on Husky and its four partners in their follow-up drilling at the first oil discovery in the Norman Wells region since 1920.

Initial test wells, completed in March, yielded 6,000 barrels per day of oil and condensate and 20 million cubic feet per day of natural gas — more than double original projections — from productive intervals in a 600-foot hydrocarbon-bearing column.

Husky spokesman Leif Sollid told Petroleum News that the Summit Creek B-44 well is a “very encouraging discovery … one that holds a lot of promise.”

But he cautioned it is “premature to speculate on a development plan” before the next phase of drilling is completed.

Two wells set for January

Two wells will be spudded in January — one to help assess the size of the pool and one to test a separate undrilled nearby prospect.

Husky, with a 29.4775 percent stake, took over operatorship in May of Exploration License 397 and adjacent lands covering 620 square miles after Northrock, with a 32.5 percent interest, was sold to Houston-based Pogo Producing. The other participants are EOG Resources Canada 26.3975 percent, Pacific Rodera Energy 6.625 percent and International Frontier Resources 5 percent.

Through the spring and summer 120 miles of two-dimensional seismic were completed and consultations were started with the Sahtu aboriginal community in the Central Mackenzie Valley.

The Norman Wells field, with an estimated 680 million barrels of oil, was discovered by Imperial Oil 85 years ago.

It is currently producing about 22,000 bpd, which is carried by an Enbridge pipeline to northern Alberta.

But the pipeline is operating well short of its 32,000 bpd capacity, raising hopes that Summit Creek will become a commercial find.

Paramount has permission for five wells

Meanwhile, Paramount has received permission from the Northwest Territories Land and Water Board to drill five gas exploration wells in the Cameron Hills area of the lower NWT, part of its plans to drill 48 wells over the next 10 years, with the objective of tying productive wells into its gas-gathering system in the region.

But the Kakisa First Nation may try legal action to block the issuance of a land use permit and water license.

It has already seeking a judicial review of an environmental assessment of the Paramount program.

But the land and water board said it had no reason to delay issuing permits once the environmental assessment was completed and accepted by the Canadian government.

—Gary Park



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