ARCHIVED - New Lands Available for Posting in the Mackenzie Valley


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Volume 2, Number 3
June 1995

New Call for Nominations

A new call for nominations will be launched on July 5, 1995, for lands in the central Mackenzie Valley of the Northwest Territories. Interested parties have until November 9 of this year to submit posting requests. Requested parcels will appear in a call for bids at the end of November.

The bid selection criterion remains the total amount of money that the bidder proposes to spend doing exploratory work on the parcel during Period 1 of the term of the exploration licence.

The term consists of two consecutive periods. The drilling of a well during Period 1 of the term qualifies the licence holder to retain the licence for Period 2, whether or not the total amount bid has been spent. In Zone A, where exploration is less mature, Period 1 lasts 5 years followed by 4 years in Period 2. In the Mackenzie Valley corridor, referred to as Zone B, Period 1 lasts 4 years followed by 4 years in Period 2.

New Acreage

The call area includes, for the first time, most of the acreage where the Gwich'in and Sahtu Peoples are surface owners, and where the Crown is owner of the subsurface.

Of particular interest is the opportunity to acquire exploration rights adjacent to the Norman Wells oil field. There is good potential for discovering additional reef build-ups of Middle Devonian and carbonate shoals of lower relief in areas close to existing production. A large area north of Fort Norman is also available for the first time.It lies northeast (and up-dip) from the Norman Wells field where thrust panels successively outcrop in the Franklin Mountains, repeating the carbonate stratigraphy of the Norman Wells area.

New Terms and Conditions

Some of the terms and conditions of the Call for Nominations and the Call for Bids have been modified to make the rights issuance process more competitive. Several changes were made at industry's request. The following summarizes the main modifications.

Call for Nominations

Priority of Posting Established . Posting requests submitted between July 5 and November 9, 1995, will be treated on a first-come first-served basis. In the case of overlapping requests, the configuration of the first requester will be honoured; the requester with the overlap will have the opportunity to either maintain his posting on the non-overlapping sections or withdraw his request.

Submission of Posting Requests. Posting requests may be delivered by registered mail, by fax or in person to our office. Receipt of requests directly by the Northern Oil and Gas Directorate will allow better tracking of posting priorities and timely treatment of overlaps.

Call for Bids

Requirement for Bid Deposit Dropped . We now only require that each bid be accompanied by a work deposit representing 25% of the bid amount. This deposit is refundable and may be in the form of a bank draft, money order or certified cheque. Winning bidders can replace this guarantee, at their own convenience, by an acceptable negotiable financial instrument.

Sale Results Announced Next Day. The sale results will be announced the day following the closing of the call. Exploration licences to winning bidders, will be issued within one week of the announced call results.

Northern Petroleum Geology

Summary information on the geology of the Central Mackenzie Valley region is available in the Vol.1 No.4 issue of the Bulletin dated August 1994. A copy will be provided on request and is also available on Internet.

Additional information is available in "Petroleum Exploration in Northern Canada --- a guide to oil and gas exploration and potential". This new prospectus on northern petroleum geology is available on request from the Northern Oil and Gas Directorate.

Educational Seminar on the CPRA

Just a quick reminder that staff of the Northern Oil and Gas Directorate, assisted by officials from Natural Resources Canada and the National Energy Board, will be presenting a one-day seminar on the management of oil and gas resources in Canada's North and on the Canada Petroleum Resources Act (CPRA). The seminar will be held on September 18, 1995, (9:00-17:00) at the Metropolitan Centre in Calgary. It is sponsored by the Canadian Association of Petroleum Landmen. For registration, please contact Denise Grieve at the CAPL office in Calgary at (403) 237-6635.

Exploration Round-up

Seismic operations have picked up considerably in the Mainland Territories with over 650 km of seismic shot from February to April, 1995. This work has been distributed between 5 exclusive programs and a non-exclusive ("spec") programme of 300 km.

Now is the time of year for company geologists to get away from their computers and hammer some rock. The Geological Survey of Canada (Calgary) is offering a field trip to the Nahanni area to examine dolomitization in the Manetoe facies in spectacular outcrop. The Manetoe is the principal reservoir target in the Fort Liard area and hosts major gas pools in the nearby Pointed Mountain and Kotaneelee fields. The trip will take place in late August. For more information, please contact Dave Morrow (403) 292-7143 or Tim Bird at (403) 292-7017.

CSPG Convention

Thanks to all who visisted our booth at the Canadian Society of Petroleum Geologists Convention in Calgary at the end of May. We appreciated the opportunity to meet you and we're delighted at the amount of interest.

Release of Well and Seismic Data - Central Mackenzie Valley

With the completion of the first rights issuance cycle in the Central Mackenzie Valley since the mid-eighties, certain well, geophysical, and geological program data pertaining to this region have been released. These include final well history reports and all other data for the following five wells: Conoco et al N. Little Bear O-51, Chevron et al Mountain River O-18, Chevron et al Hume River I-66, Chevron East Hume River N-10, and Chevron East Hume River I-20. Final well history reports have also been released for Chevron Sperry Creek N-58 and Chevron Ramparts River F-46. However, for these two wells, certain other data will not be released until 1996, the fifth year anniversary of rig-release.

In addition, 2417 km of seismic data from six programs shot between 1986 and 1988 and reports from a number of other geochemical, gravity and geology programs have been released.

This new information gives a superior view of the subsurface west of the Mackenzie River between Fort Good Hope and Norman Wells.It is available from Rudi Klaubert at the Frontier Information Office, National Energy Board Calgary. (403) 299-3112.

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