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Central Mackenzie Valley land bids total C$17.4 million Spare capacity in Enbridge pipeline currently exists; land positions accumulated in anticipation of land claims settlements Gary Park PNA Canadian Correspondent
Canada's Northern Oil and Gas Directorate attracted work commitments and bonus bids worth C$17.4 million for five exploration parcels covering almost 1 million acres in the Central Mackenzie Valley of the Northwest Territories.
The top bid was by Paramount Resources for 209,738 acres in the Sahtu land claim area north of Norman Wells, which has a long-standing oil producing field. The company paid C$10.75 million for the parcel and made a work deposit of C$2.69 million.
An Enbridge pipeline from Norman Wells to Zama in northern Alberta currently has spare capacity of about 25,000 barrels per day.
Only one of the six parcels — a block covering 208,355 acres — received no bids.
U.S.-based companies were especially active in the sale, although bidding fell far short of the 2000 call for bids resulted in total commitments of C$57.5 million, with Canadian Natural Resources topping the bids at C$17.5 million for one 295,000 acre parcel.
Other successful bidders in the latest round were Devlan Exploration, C$2 million plus a C$500,000 work deposit for 198,826 acres; Canadian Forest Oil, C$1.87 million for 169,935 acres; Hunt Oil, C$1.26 million for 205,626 acres; and a coalition headed by Anadarko Canada and Northrock Resources, with EOG Resources Canada, International Frontier Resources and Pacific Rodera Ventures as partners, C$1.53 million for 198,940 acres.
Companies have built positions Land positions have been accumulated in the region in anticipation of land claims settlements with First Nations and the end in 1995 of a drilling moratorium that had been in place since 1970.
International Frontier president Pat Boswell has said a major find in the Central Mackenzie Valley would change the dynamics of exploration across the Canadian Arctic, including the Mackenzie Delta.
"We're playing with some pretty big stuff up there ... but you pretty much need (a find of) 25 million barrels to be economic," he said.
Alberta Energy Co. is operating a major drilling program which company officials said is targeting potential oil accumulations in excess of 100 million barrels.
The call for bids closed Sept. 17; winning bids were announced Sept. 19.
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