Central Mackenzie Valley open for bids

Gary Park, PNA Canadian correspondent

One parcel of land in the burgeoning Central Mackenzie Valley region of the Northwest Territories has been offered for bids by the Canadian government.

The parcel covers almost 200,000 acres south of Norman Wells, which has the only producing oilfield in Canada north of the 60th parallel.

The call for bids was issued Jan. 25 by the federal Minister of Indian Affairs and Northern Development Robert Nault and closes May 27.

A successful bidder for the exploration rights will be determined by the total amount of money committed to doing exploratory work during the first four-year period of the eight-year license. A deposit covering 25 percent of the bid amount must accompany the bid.

Provided a well is drilled during the first period, the license holder will retain the rights for the second period whether or not the total amount has been spent.

The Central Mackenzie is currently embarking on its most active drilling season, with E&P companies drawn by prospects of a gas pipeline through the region from the Mackenzie Delta.

Calgary-based junior Devlan Exploration Inc. is poised to complete and test three gas wells drilled two winters ago on an acreage it shares with Vintage Petroleum Canada Inc. in the Grandview Hills area of Peel Plateau.

If it is able to identify significant reserves, Devlan has earmarked about 150 possible locations for further drilling.

Canadian Natural Resources Ltd. is ready to launch three-well program for the Colville Hills northeast of Norman Wells and indicated it is prepared to drill 40 wells over five years if the initial results are encouraging.

A partnership of Apache Canada Ltd. and Paramount Resources Ltd. plans two gas wells south of Colville Lake, with projected deliverability of up to 10 million cubic feet per day.