ARCHIVED - Southern Northwest Territories Open for Posting

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Bulletin
Volume 1, Number 2
June 1994

Call Launched Around Fort Liard

For the first time in 25 years, industry is invited to select, through a Call for Nominations, parcels that might be of interest to them in the Fort Liard area of the southern Northwest Territories. The selection process is entirely confidential.

The Call for Nominations will close on July 13, 1994. Selected parcels will be tendered through a competitive call for bids scheduled to close in December, 1994. Winning bidders will be awarded an exploration licence for a term of seven years - divided into two periods of four and three years, respectively.

An exploration licence confers:

Selection of winning bids

Winning bids will be selected on the basis of the total amount of money the bidder proposes to spend doing exploratory work on the parcel during the first four years of the term. To assist potential bidders in their bid assessment, a schedule of allowable expenditures is attached to the call document.

Winning bidders are awarded an exploration licence upon providing a work deposit equivalent to 25% of the bid amount submitted in the call for bids, and the issuance fee of $250. The work deposit secures work or activity undertaken during the first four years of the term and is refunded in accordance with the schedule of allowable expenditures.

The drilling of a well during the first four years qualifies the explorers for another three years. Successful exploratory drilling during the term of the exploration licence entitles the explorer to apply for and receive a significant discovery licence or a production licence.

Area Available for Nominations

The area available for nominations is located immediately north of the British Columbia border on trend with the same geological plays where important natural gas discoveries were made in the northeast of that province. The call area comprises approximately 1 million hectares.

Geology

The southern Northwest Territories comprise the northern extension of the prolific Western Canada Sedimentary Basin and shares several exploration plays with northeast British Columbia and northern Alberta, both very active exploration areas. Success from limited exploration in the call area indicates potential for a density of discoveries comparable to that in adjacent areas of the provinces.

The greatest remaining potential for large gas pools lies in the foothills plays where the Manetoe dolomite of the Devonian Nahanni and Arnica formations are folded and thrusted into huge structural traps.

To the east, potential for a density of gas discoveries is indicated by a number of discovered pools in the N.W.T. and numerous pools in the adjacent areas of British Columbia, found in Devonian structural/stratigraphic traps. Reservoirs include the Slave Point Presqu'ile barrier bank edge, the bank interior Slave Point, Sulphur Point and Keg River limestones and dolomites, and porous zones in the Jean Marie, Kotcho and Tetcho formations.

Carboniferous to Cretaceous clastic rocks have fair to excellent reservoir characteristics in the area, but remain largely unexplored.

Reserve Estimates

Eight gas discoveries have been drilled in the immediate area of the call. The total discovered resources for these gas pools is estimated by the National Energy Board at 12,900 million cubic metres.

Operational Facts

Exploration conditions and costs are comparable to northern Alberta and to the foothills of British Columbia. A population/service centre is situated in the middle of the call area at Fort Liard.

There is a gas pipeline from the Pointed Mountain field to the Westcoast Transmission system in British Columbia. Amoco Canada's Pointed Mountain gas field in the southern N.W.T. was discovered in 1967. Since a gas plant was built in 1972, the field has been a steady source of natural gas, having produced 8.6 billion cubic metres to the end of 1993.

For More Information

To receive a copy of the Call for Nominations document, or to learn more about the mangement of oil and gas resources in Canada's North, please contact the Northern Oil and Gas Directorate of the Department of Indian Affairs and Northern Development in Ottawa at (819) 994-1606 or the Resource Evaluation Branch of the National Energy Board in Calgary at (403) 299-3112.

Call for nominations

Closing Date.....................July 13, 1994

Maximum Nomination Parcel Size...1 grid (approximately 23,890 hectares)

Area of Call.....................1 million hectares

Area under Licence in Call Area..Approximately 50,000 hectares

Call for bids

Minimum Bid......................Work proposal of $1 million

Period of Call...................120 days, closing in December

Term of Exploration Licence......7 years: two periods of 4 & 3 years, respectively

Work Requirement.................1 well prior to end of Period 1

Rentals..........................Period 1: none

Period 2: $2.50/ha 1st year

$5.00/ha 2nd year

$7.50/ha 3rd year

Geology

Depth to Target Zones............700 to 4500 m

Maximum Basin Thickness:.........In excess of 5000 m in foothills belt, shallowing to east

Hydrocarbon Shows................Oil and gas in many formations from Devonian to Cretaceous

First Discovery..................1960 (Home Signal CSP Celibeta No. 2; Slave Point gas)

Discovered Resources.............Gas: 12,900 million cubic metres (in 8 fields)

Basin Type.......................Precambrian rifts, Paleozoic continental margin, Mesozoic foreland basin

Depositional Setting.............Paleozoic: shallow marine shelf to shelf margin; Mesozoic: alluvial to shallow marine shelf

Reservoirs.......................Mid-Devonian carbonates (unproven: Upper Devonian carbonates, Mississippian and Cretaceous sandstones)

Seals............................Thick Devonian shales, tight carbonates

Source Rocks.....................Mature Devonian shales, carbonates, evaporites; Mississippian and Cretaceous shales

Total Number of Wells............60 (estimated)

Seismic Coverage.................3500 km. (estimated)

Development

Production.......................Gas: 8.6 billion cubic metres from Pointed Mountain (to year-end 1993)

Pipelines........................Pointed Mountain gas pipeline to Westcoast transmission system to Fort Nelson, B.C.; Norman Wells Oil Pipeline to Zama, Alberta, situated to east of call area.

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