EOG Canada plans first Northwest Territories well this winter

Gary Park

The Canadian division of Houston-based EOG Resources is about to extend its traditional shallow-gas operations in Western Canada into the Arctic.

Maire Baldwin, vice president of investor relations, said EOG Canada expects to drill its first well in the Northwest Territories next February as it looks for ways to supplement its bread-and-butter plays “with bigger ideas and bigger plays.”

The Northwest Territories well, about 20 miles west of Norman Wells oil-producing region in the central Mackenzie Valley, should be less than 10,000 feet on a 318,000-acre lease.

EOG Canada has a 50 percent working interest in the exploration block, acquired in a July 2000 licensing sale. Its partners are Northrock Resources (owned by Unocal) and Berkley Petroleum (now Anadarko Canada), each with 25 percent stakes.

Baldwin could not indicate whether oil or gas is being targeted at Norman Wells, saying “we are simply looking for hydrocarbons.”

She said the company is also eyeing other opportunities in frontier areas.

EOG has a 17.5 percent stake in a second Northwest Territories license covering 333,000 acres southwest of Norman Wells, in consortium with Northrock, Berkley International Frontier Resources and Pacific Rodera Ventures.

EOG Canada has forecast a 4.4 percent increase in Canadian production for 2001, after achieving daily output in the first half of 120 million cubic feet of gas and 2,300 barrels of crude oil, condensate and gas liquids. Its reserves are 546 billion cubic feet of gas and 5.82 million barrels of liquids.

The company’s capital budget for Canada was $85 million for 2001, up from $75 million in 2000. Of its planned 1,050 wells this year, 1,000 were shallow gas wells in southeastern Alberta and southwestern Saskatchewan and 50 were oil wells in southwestern Manitoba.