Canada issues call for bids

Gary Park

Petroleum News Calgary Correspondent

The Central Mackenzie Valley is the focus of this year’s call for exploration bids in the Northwest Territories.

Of the six parcels offered, five are in the valley and cover a combined 794,000 acres, while one is in the Beaufort Sea-Mackenzie Delta region and covers 138,500 acres.

The invitation follows a call for nominations in December, which included a call for the Arctic Islands of Nunavut Territory and again drew a blank three years after a the federal government’s Northern Oil & Gas Directorate came up empty-handed in the same region. Successful bidders must submit 25 percent of their bid amount to cover the first phase of the exploration license.

The license term for the Central Mackenzie Valley is eight years, and requires a well to be drilled in the first four years to qualify for the full term. Beaufort/Delta parcels are issued for nine years, with the first phase covering five years.

A refundable drilling deposit of C$1 million can be submitted before the end of the first period to obtain a one-year extension to start the required wells.

Full details are available at www.ainc-inac.gc.ca/oil/act/index_e.html