Four Calgary-based companies will spend $182.5 million (Can.) on exploration and development of new leases in the Mackenzie Delta region of Canada's High Arctic.
Petro-Canada and Anderson Exploration Ltd. will spend $105.2 million to explore two properties in the Mackenzie Delta area over the next 5 years, with Petro-Canada holding a 60% interest and Anderson 40%. The companies have leases covering 897,000 acres.
Petro-Canada said it will gather and analyze seismic data before beginning a drilling program in 2001 or 2002.
Poco Petroleums Ltd. and Burlington Resources Ltd. will spend $78 million over 5 years exploring and developing two parcels. Burlington agreed in August to buy Poco for $2.5 billion (US). The Poco-Burlington lands cover 360,000 acres and adjoin two onshore discoveries, Niglintgak and Taglu gas fields. The two fields have estimated reserves of 2.5 tcf of gas and 60 million bbl of crude oil and NGL. Seismic surveys are planned on the two parcels this winter.
Arctic potential - Canada's National Energy Board estimates that 9 tcf of gas has been discovered in the region, with an upside potential for 64 tcf.
It is the first time in 8 years that Ottawa's Northern Oil and Gas Directorate has had competitive bids for parcels in the high-cost exploration region.
There have been significant natural gas discoveries recently in the Fort Liard region of the southern Northwest Territories, north of the Alberta border.
A recent study by consulting firm Purvin & Gertz said natural gas could flow from Canada's arctic regions anytime between 2007 and 2020, depending on various economic factors. It said a sustained price of $2.50 (US)/Mcf would support the operating, gathering, processing, and transportation of gas from the region into the North American gas grid.
