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Consortium abandons exploration well in Central Mackenzie Valley Data from well identifies leads; drilling locations to be evaluated over next two winter drilling seasons; exploration license near aging Norman Wells oilfield Gary Park PNA Canadian Correspondent
International Frontier Resources Corp. has abandoned a wildcat well that is part of a program aimed at expanding the most northerly producing oil field in Canada.
The Devo Creek P-45 well was spudded Jan. 5 in the Central Mackenzie Valley of the Northwest Territories about 20 miles west of the Norman Wells field, which was discovered in 1920.
IFR said the 8,200-foot well tested multiple targets on Exploration License 401 held by a consortium of six companies, with EOG Resources Canada Inc. as operator.
It said an interpretation of the data has identified a number of prospect leads and firm drilling locations that will be evaluated during the next two winter drilling seasons.
The consortium is seen as the best immediate hope for pumping fresh life into the Norman Wells area, where 180 million barrels have been produced so far, but an Enbridge Inc. pipeline to Zama in northwestern Alberta is operating at only half of its capacity of 50,000 barrels per day.
Since a 20-year exploration moratorium was removed in 1995, the consortium has been awarded four licenses covering 1.1 million gross acres. 1997 lease, surface access In 1997 IFR also negotiated freehold lease and surface access agreements, along with a benefits plan with the Sahtu Tulita District Land Corp. — one of the first deals to be reached between the petroleum industry and the First Nations since the signing of a land claim with the Canadian government.
Through various farm-outs, IFR 10.875 percent formed a consortium with Northrock Resources Ltd. (a wholly owned subsidiary of Unocal Corp.) 32.5 percent, Anadarko Canada Energy Ltd. 32.5 percent, EOG Resources Canada 17.5 percent and Pacific Rodera Ventures Inc. 6.25 percent.
The consortium has spent C$16 million exploring the area; 500 miles of two-dimensional seismic and two large aero-magnetic surveys have been acquired; and the partners plan to spend another C$31 million on future exploration.
A total of eight prospective plays have been identified, ranging in depths from 1,150 feet to 11,500 feet, with drilling costs estimated at C$8 million to C$13 million per well.
Reserve estimates range from 10 million to 200 million barrels for oil prospects and 200 billion to 850 billion cubic feet for gas prospects.
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