Call for bids opens for Central Mackenzie Valley

Kay Cashman

Canada’s Minister of Indian Affairs and Northern Development is inviting bids on six parcels in the Central Mackenzie Valley in northwestern Canada.

The call for bids opened May 5 and closes at noon on Sept. 17.

Bid selection is based on the total amount of money that the bidder proposes to spend doing exploratory work on the parcel during period 1 of the exploration license term. The term consists of two consecutive four-year periods.

Twenty-five percent of the bid amount has to be submitted with the bid. The drilling of a well during period one qualifies the license holder to retain the license for period two, whether or not the total amount of the bid has been spent. However, any excess bid deposit will be forfeit.

This year for the first time a provision for a drilling deposit is included in the terms and conditions. A drilling deposit may be submitted at the end of the first period to obtain one-year period of grace to commence the required well. The deposit is refundable when the well is drilled. The Northern Oil and Gas Directorate, which issued the call for bids, said the provision for a drilling deposit “recognizes limitations of rig availability and unpredictable operating windows in the North.”