Chevron Canada plans five more Mackenzie Delta exploration wells

Chevron Canada Resources is stepping up its exploration of the Mackenzie Delta region, with plans for five exploration wells and 130 square miles of seismic work over the next two winters.

A company spokesman told the Canadian Broadcasting Corp. that the wells, costing about C$30 million each, are part of Chevron’s efforts to build its natural gas reserves in anticipation of the Mackenzie Valley pipeline going ahead.

A Chevron-BP Canada Energy partnership has been the most active explorer on the Delta in the 2004-05 winter.

It spudded the exploratory Olivier H-1 gas well before Christmas, completing drilling in mid-February at a depth of about 11,400 feet, and quickly followed that by spudding Olivier 2H-01 on March 9, targeting a depth of about 9,800 feet.

No results have been released from the H-1 well.

Chevron has repeatedly indicated its desire to turn the Delta into a long-term business in response to the growing North American demand for gas.

—Gary Park