Call of the Yukon grows stronger for energy explorers

Gary Park

The Yukon government joined the ranks of Canada’s energy frontiers by awarding its first oil and gas exploration rights since gaining administrative control over its natural resources from the federal government a year ago.

A unit of Calgary-based Anderson Exploration was the sole successful bidder, making C$20.4 million in work commitments for almost 200,000 acres in the Eagle Plain basin of north-central Yukon.

The company said it will likely start seismic work next year as part of its initial six-year permit.

“We feel the exploration possibilities have the potential to generate enough gas reserves to justify building development infrastructure,” said a spokesman for Anderson.

So far, only 71 wells have been drilled in the territory, with reserves estimated at 500 billion cubic feet of gas and 9.4 million barrels of oil.

But exploration has been delayed during negotiations over government control of resources and the settlement of 14 aboriginal land claims, which have given the Yukon a unified exploration and development regime.

Economic Development Minister Trevor Harding said the Yukon will now “move aggressively” to offer more land for bids.

The next targets will be Peel Plateau adjacent to the oil and gas-rich Mackenzie Delta/Beaufort Sea region of the Northwest Territories and the Liard Plateau, which is an extension of the Northwest Territories’ Fort Liard gas fields where more than 1 trillion cubic feet has been discovered in the last 18 months.