EXPLORATION SLATED IN CANADIAN ARCTIC

Three companies have pledged $55.5 million in work commitments for exploration rights in the Mackenzie Delta and Beaufort Sea regions of the Canadian Arctic. Shell Canada Ltd. made the largest commitment: $53.3 million for three blocks covering 272,806 acres on the Mackenzie Delta. Chevron Canada Ltd. and Amoco Canada Ltd. will spend $3.2 million on a block in the Beaufort Sea, north of Gulf Canada Ltd.'s Amauligak oil discovery.

Dec. 23, 1991

2 min read

Three companies have pledged $55.5 million in work commitments for exploration rights in the Mackenzie Delta and Beaufort Sea regions of the Canadian Arctic.

Shell Canada Ltd. made the largest commitment: $53.3 million for three blocks covering 272,806 acres on the Mackenzie Delta.

Chevron Canada Ltd. and Amoco Canada Ltd. will spend $3.2 million on a block in the Beaufort Sea, north of Gulf Canada Ltd.'s Amauligak oil discovery.

It is the first time in 25 years Ottawa has awarded rights on the Mackenzie Delta. A moratorium had been placed on new permits because of unsettled native land claims and environmental concerns. A major claim was settled in 1990.

Exploration has been in a slump for several years in the Mackenzie-Beaufort region with few wells drilled.

Shell plans to run seismic survey work this winter on its new delta acreage. It will drill four to six wells the next 4 years. Shell also plans to drill this winter near its 1990 discovery on other acreage in the area. Shell's Unipkat N-12 flowed 16,000 b/d of oil and 11.6 MMcfd of gas.

Chevron and Amoco have not yet made firm plans for work on their 345,936 acre Beaufort parcel.