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Central Mackenzie Valley target for oil search Senior independents, junior explorers, plan C$44 million in seismic, drilling work concentrated around producing area at Norman Wells Gary Park PNA Canadian Contributing Correspondent
The dizzying pace of recent petroleum developments in Canada’s North has been heavily concentrated on natural gas. But oil is quietly working its way back into the spotlight.
A handful of companies, some senior independents and some junior explorers, has launched C$44 million of seismic and drilling work in the central Mackenzie Valley this year.
Their search is concentrated in the vicinity of Norman Wells, where oil was discovered in 1920 and has been produced by Imperial Oil at the rate of up to 30,000 barrels a day since the late 1950s.
Enbridge, which operates North America’s longest crude oil pipeline system, has a delivery link from Norman Wells to Zama, in northwestern Alberta, but is currently operating with 25,000 barrels a day of spare capacity.
A series of wildcat wells is being drilled by Alberta Energy Co., Renaissance Energy, International Frontier Resources, Northrock Resources, Berkley Petroleum and Pacific Rodera Ventures. Other operators in the area include Ranger Oil, Murphy Oil, Canadian 88 Energy and Canadian Abraxas.
Goal 100 million barrel reservoirs AEC’s aboriginal affairs leader Andy Popko said there are high hopes of a major oil strike. He said last year’s 600 billion cubic feet of gas discoveries at Fort Liard by Chevron Canada Resources, plus gas discoveries by Berkley and Purcell Energy, is proof that “the big pools have got to be somewhere.”
AEC and IFR are aiming for potential reservoirs of 100 million barrels or larger, and regard 25 million barrels as the lowest economically viable cut-off.
Popko said all the participants are “pulling for each other,” because any oil strike will make “everyone feel better.”
IFR president Pat Boswell said a 1995 land claims settlement with the Shatu Dene First Nations lifted a drilling moratorium imposed in 1970 and gives his company access to 100,000 acres in the Tulita discovery license on top of the 280,000 acres it is currently drilling south of Fort Norman.
He said IFR, like all juniors, is confident that if it can “put together good technical prospects we can attract a good-sized partner” to help finance the expected C$6.3 million cost of completing a well in the region.
Boswell said a major find in the central Mackenzie Valley would also quicken interest in development of the Mackenzie Delta and Beaufort Sea, where Petro-Canada, Anderson Resources, Burlington Resources and Poco Petroleums made C$183 million in work commitments last year — the first awarded in eight years.
The federal government’s Northern Oil and Gas Directorate is testing the level of interest in the Arctic. It has just issued a new call for nominations in the central region and a call for bids is expected in March.
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