The management of oil and gas resources on Crown lands north of latitude 60°N in the Northwest Territories, Nunavut and the northern offshore is a federal responsibility carried out by the Northern Oil and Gas Branch of Indian and Northern Affairs Canada.

Petroleum resource management on Crown lands is exercised under federal legislation. The Canada Petroleum Resources Act   and its regulations govern the granting and administration of Crown exploration and production rights and set the royalty regime. The Canada Oil and Gas Operations Act   governs the regulation of petroleum operations and associated benefits requirements. Land, royalty and benefit matters are managed by the department on behalf of the Minister of Aboriginal Affairs and Northern Development while the National Energy Board takes the lead role in approval of operations.

Information on the northern oil and gas regime may be found within this website.

Message from the Honourable John Duncan, PC, MP
Minister of Aboriginal Affairs and Northern Development

I am pleased to table before Parliament this annual report on the administration of oil and gas lands in the Northwest Territories, Nunavut and northern offshore for the year ending December 31, 2011.

In addition to being a fundamental part of our Canadian heritage and our national identity, the North, with its significant oil and gas potential will play an important role in our country’s future economic growth.

The Government of Canada is committed to increasing our knowledge of northern energy and mineral potential to facilitate sustainable economic development in the Canadian Arctic. In July, the results of the 2010-2011 annual Calls for Bids (oil and gas) processes were announced. These resulted in eleven new exploration licences in the central Mackenzie Valley being awarded for work commitments totalling $534 million, and two additional exploration licences in the Beaufort Sea. Today, the application of new technology and techniques on these new licences opens up the possibility of developing unconventional resource reservoirs onshore and the exploration of new areas in Canada’s Arctic offshore.

The cyclical nature of the upstream oil and gas exploration sector was evident in 2011, with only one new exploration well drilled in the Northwest Territories. Canadian natural gas prices declined to remain at low levels while oil prices rose, and in this context, royalties from oil and gas production on northern frontier lands in 2011 were 26% lower than in 2010.

On December 15, 2011, the National Energy Board released its report “Review of Offshore Drilling in the Canadian Arctic”. The report confirmed that drilling in the North can be done safely and the National Energy Board has the tools necessary to ensure the safety of both workers and the environment. With the environment very much in mind, this year saw the implementation of the Beaufort Regional Environmental Assessment, a four year initiative to develop a knowledge base of scientific and socio-economic information for the Beaufort Sea.

I invite you to consult the Northern Oil and Gas Annual Report for further details on the exploration and development of Canada’s northern oil and gas resources over the past year.

John Duncan
May 2012

Frontier Lands [Note 1] under the administrative responsibility of the Minister of Aboriginal Affairs and Northern Development

Text description of this map is available on a separate page.

Northern Canada is richly endowed with oil and gas resources which, with the exception of Norman Wells in the central Mackenzie Valley and several gas fields in the southern Northwest Territories, remain little developed. Targets of exploration seeing current interest include large untested structures in the Arctic offshore and opportunities onshore.

The application of new technology to develop unconventional reservoirs such as shale continues to grow rapidly in North America and is now being considered for Northern Canada. This new opportunity complements conventional oil and gas exploration in the North. Techniques such as hydraulic fracturing in horizontally drilled well bores are allowing industry to access oil and gas resources which could not be developed using the conventional techniques of previous decades. Although the focus has been on natural gas resources locked in shale, comparable techniques can also be applied to improving recovery from oil reservoirs. Favorable geology is one key to successful development of this type of resource and excellent candidates are known to exist North of 60° which are attracting explorers.

In terms of operations, 2011 saw limited activity with only one new exploration well drilled in the Northwest Territories with expenditures at the lowest point in a decade. This is a reflection of the cyclical nature of the upstream oil and gas exploration sector for which there are many contributing factors, including prices for oil and gas.

Interest in Calls for Nominations is one of the early signals that a new cycle of exploration is beginning. In 2011, industry acquired eleven new exploration licences in the central Mackenzie Valley, Northwest-Territories, for work bid commitments of over half a billion dollars. Industry has indicated that their primary interest is to explore the potential of shale formations close to existing pipeline infrastructure near Norman Wells.

In 2011, industry interest was divided between offshore exploration for large conventional fields in the deeper waters of the Beaufort Sea and onshore exploration in the central Mackenzie Valley. An important development for offshore explorers was the release by the National Energy Board (NEB) on December 15, 2011, of its report “Review of Offshore Drilling in the Canadian Arctic.” This was the culmination of an extended review initiated by the NEB shortly after the Deepwater Horizon disaster in the Gulf of Mexico. The report confirmed that drilling in the North can be done safely and that the NEB has the necessary tools to ensure the safety of both workers and the environment. Holders of exploration licences can now refer to the filing requirements for proposed drilling operations published as a result of this review.

Oil and gas prices continued to follow opposite trends in 2011. Canadian oil prices saw an overall upwards movement with the average price over the year 18% higher than in 2010. Oil prices remained high globally with supply affected by reduced production in some countries, most notably Libya.

Table 1: Oil and Gas Prices 

	December 2010	December 2011	Average 2011
Oil - C$ per m3 (Average at Edmonton)	540.88	618.8	601.11
Gas - C$ per GJ (Average at AECO)	3.62	3.25	3.53

Source: Natural Resources Canada

Canadian natural gas prices fell 10% during 2011, closing in December at their lowest in 27 months. Increasing supply from shale gas production in the United States and lower demand due to warm weather and a fragile economic recovery in the United States served to keep prices low.

The low price of gas dampened interest in further exploration for natural gas in the North with areas known to be gas rich such as the Mackenzie Delta seeing no exploration as a result. Sustained prices for oil and natural gas liquids, however, continue to be a source of encouragement for companies planning exploration in Canada’s North.

The Mackenzie Gas Project is an example of a project potentially important for the commercialization of Canada’s northern oil and gas resources in the western Arctic. At this time, the decision to proceed with the Project rests with the proponents based on their commercial considerations.

2011 In Brief

Oil and gas exploration has a long history in the Canadian North, dating back to the Norman Wells oil discovery drilled in 1920. The late 1940s and 1950s saw increased exploration in the southern Northwest Territories followed by exploration throughout the North in the period 1960 to 1985, activity stimulated by the `oil price shock´ of 1974 and concerns for domestic supply.

Wells drilled in the Northwest Territories, Nunavut and Arctic offshore total 1563
 [Note 2] since the Norman Wells discovery with drilling activity peaking from the early 1970s to the late 1980s. The larger proportion of these wells (1093) were drilled in the Mackenzie Valley where 27 discoveries have been made. Of these, one oilfield in the central Mackenzie Valley, one oil and gas field and five gas fields (in the southern Northwest Territories) have produced oil or gas. Only the two fields with oil production are producing today.

Two hundred and seventy five wells have been drilled in the Mackenzie Delta/Beaufort Sea region with 93 of these designated as offshore wells, although many were drilled in very shallow water from thickened ice platforms or artificial islands. There are 60 discoveries in the region but, in the absence of a pipeline to southern markets, only one small gas field (Ikhil) has been developed to supply local demand. Only one offshore well has been drilled in the last 22 years.

In the Arctic archipelago north of 75°, 192 wells were drilled between 1962 and 1987: most were in the Sverdrup Basin where 19 discoveries have been made. Three offshore wells were drilled in the eastern Arctic offshore in the 1970s: one discovery was made in Davis Strait which remains undeveloped. Elsewhere, seven wells were drilled on the Hudson Bay/Foxe Basin/Hudson Strait region between 1969 and 1985 with no discoveries made.

The mid 1980s saw expanded development of the major Norman Wells oil field in the central Mackenzie Valley and the construction of a pipeline from Norman Wells to northern Alberta. Norman Wells is Canada’s most northerly producing oil field.

Current interest in the North dates from the mid-1990s with the issuance of new exploration licences by the Crown in the southern Northwest Territories, and subsequently in the central Mackenzie Valley. Later in the decade, companies acquired exploration rights to lands across much of the Mackenzie Delta and adjacent offshore. This stimulated exploration activity for a decade as companies worked to meet work commitments on these licences. In 2007 and 2008 this interest extended to deeper water areas of the continental margin in the central Beaufort Sea, a trend which was reinforced in 2010 with the issuance of a third deep water licence.

According to the National Energy Board, approximately 35% of Canada’s remaining marketable resources of natural gas and 37% of remaining recoverable light crude oil is in Northern Canada (Canada’s Energy Futures, 2011).

New exploration and development for natural gas in western Canada is increasingly turning to shale and low permeability rock formations using the rapidly developing technologies of horizontal drilling and multi-stage hydraulic fracturing. Conventional gas pools remain of economic interest, however, especially those rich in natural gas liquids. Canada’s North is thought to have excellent potential for such large conventional gas fields, beyond those major discoveries already made.

Despite Canada’s oil sands being the primary driver behind Canada’s increasing oil production, investment in improving recovery from existing fields and low permeability formations is highly attractive at today’s prices, as is exploration for conventional oil pools in regions which have not yet exhausted their exploration potential. Many regions of Canada’s North have favorable geology and the potential for large conventional oil fields. In particular, the Arctic offshore offers a vast theatre for offshore operations in regions which have been minimally explored with modern exploration techniques.

Regional estimates of Canada’s northern resource potential are listed in Table 2. These are mean estimates of potential derived by probabilistic methods. Large uncertainties remain about resource potential in many of Canada’s northern petroleum basins, especially those which have yet to be tested by the drill. New geological studies led by the Geological Survey of Canada under the Government’s Geoscience for Energy and Minerals Program are building confidence that these potential estimates in Table 2 are based on sound data.

The most accessible of these potential resources lie between the border with British Columbia and Alberta at 60 degrees North and the Beaufort Sea in a broad corridor running between the Rocky Mountains and the Canadian Shield. Portions of the Horn River and Liard Basins extend into the southern Northwest Territories. These basins are seeing active development in northern British Columbia and Alberta, particularly for shale gas. The western Arctic includes much of the Northwest Territories and adjacent Arctic offshore, an area estimated to contain more than half of the recoverable petroleum in northern Canada, with the Beaufort-Mackenzie Basin the largest potential contributor.

In the Mackenzie Delta area, major gas fields at Taglu and Parsons Lake, together with the large Niglintgak field are proposed for development by the Mackenzie Gas Project. Combined resources in these fields are estimated by the proponents at 161 x 10⁹ m³ (5.7 trillion cubic feet). Additional resources in more recent discoveries may augment this production.

Discovered gas fields in the Colville Hills of the central Mackenzie Valley could access a future Mackenzie Valley gas system by means of a short lateral pipeline. The central Mackenzie Valley also holds considerable potential for further oil discoveries. Declining production from the major oil field at Norman Wells opens spare capacity on the existing Enbridge oil pipeline to Alberta. New discoveries in the vicinity would be close to these existing facilities.

Discovered gas volumes in Canada’s Arctic Islands (north of 75°) are comparable to those in the Beaufort Sea/Mackenzie Delta region. The most promising basin is the Sverdrup Basin where past discoveries include major gas fields at Drake Point and nearby Hecla with combined discovered resources estimated at 257 x 10⁹ m³ (9.1 trillion cubic feet). Significant oil discoveries and largely unexplored oil and gas potential is also present in this vast region of diverse geology.

Several regions of the North remain entirely undrilled. Examples are the Arctic Continental Shelf, deep water areas of the Beaufort Sea continental shelf and slope, and most of the Canadian half of Baffin Bay including Lancaster Sound. In these areas, oil and gas potential is largely conceptual although regional studies are confirming high potential for both oil and gas.

In the 1970s, exploration in the Canadian waters of Davis Strait was successful with a gas discovery at Hekja but in recent years exploration has been limited to reconnaissance seismic programs extending westwards from more active exploration offshore Greenland. In 2011, exploration continued in the Greenland half of Baffin Bay with five new wells drilled. No discoveries were announced.

Unconventional hydrocarbons are of current interest in the Mackenzie Valley. These include shale gas and shale oil potential in the Mackenzie Valley in the extensive high quality Devonian source rocks, known to have generated the oil in the major Norman Wells field. No estimates for unconventional resources have been included in Table 2.

Table 2: Oil and Gas Resources 

OIL RESOURCES
Region	Discovered Resources		Undiscovered Resources		Ultimate Potential
	106 m3	MMbbls	106 m3	MMbbls	106 m3	MMbbls
Northwest Territories and Arctic offshore	187.9	1182.5	799.7	5032.6	987.6	6215.0
Nunavut and Arctic offshore	51.3	322.9	371.8	2339.4	423.1	2662.3
Arctic Offshore Yukon	62.5	393.8	412.7	2596.8	475.2	2990.6
Total	301.7	1899.1	1584.1	9968.8	1885.9	11,867.9
GAS RESOURCES
Region	Discovered Resources		Undiscovered Resources		Ultimate Potential
	109 m3	Tcf	109 m3	Tcf	109 m3	Tcf
Northwest Territories and Arctic offshore	457.6	16.2	1542.2	54.8	1999.8	71.0
Nunavut and Arctic offshore	449.7	16.0	1191.9	42.3	1641.6	58.3
Arctic Offshore Yukon	4.5	0.2	486.6	17.3	491.1	17.4
Total	911.8	32.4	3220.7	114.3	4132.6	146.7

• MMbbls - million barrels (of oil); Tcf - trillion cubic feet (of natural gas).
• Resources are 'recoverable': standard recovery factors have been applied.
• Numbers may not add precisely due to rounding.
• Adapted from Table 1 and Table 4 in Drummond, K.J. 2009, Northern Canada Distribution of Ultimate Oil and Gas Resources  . Compiled and integrated from several published sources which may underestimate or overestimate actual field resources. Volumes and distribution should be regarded as approximate and reflect the opinion of the consultant.
• The Arctic Offshore includes marine areas offshore Yukon and the Northwest Territories in the Beaufort Sea, and offshore Nunavut in the High and Eastern Arctic. Resources within Yukon are not included. Assignment of offshore areas by the consultant is based on extrapolation of onshore boundaries between Territories, and does not reflect any position of the Government of Canada.
• Note that discovered gas volumes do not include estimates for recent discoveries (at Ellice I-48, Olivier H-01, Langley K-30, Langley E-07, Kurk M-15 and Ellice J-27 in the Mackenzie Delta, and Summit Creek B-44, Stewart D-57, Lac Maunoir C-34 and Nogha C-49 in the Central Mackenzie Valley).

Rights Issuance

The Minister of Aboriginal Affairs and Northern Development provides industry with an annual opportunity to obtain exploration rights in the Northwest Territories, Nunavut and the northern offshore. The exploration rights are issued pursuant to the Canada Petroleum Resources Act. Current oil and gas disposition maps are available on the Aboriginal Affairs and Northern Development Canada website.

In accordance with the provisions of comprehensive land claim settlement agreements, the views and support of Aboriginal communities and organizations on the terms and conditions of the issuance and related matters are sought prior to rights issuance. Similarly, the Department consults and engages territorial governments and other federal bodies for environmental sensitivity information. After consideration of responses received, the areas opened for exploration may be adjusted from year to year.

A Call for Nominations precedes each Call for Bids, allowing industry to specify lands of interest for subsequent inclusion in a Call for Bids. Calls for Bids are open for the statutory minimum of 120 days, and are published in Part I of the Canada Gazette  .

Exploration rights are issued pursuant to an open, competitive bidding process. A single bid evaluation criterion is used, currently the expenditure planned on exploration of the land block (the “work expenditure bid”).This determines the successful bidder who is issued an exploration licence of up to nine years, comprising two periods. The successful bidder is expected to spend the dollar value of the proposed work during the first period of the licence, and is required to drill one well during this first period to continue the licence into the second period.

In February 2011, two Calls for Nominations closed with three parcels nominated in the Beaufort Sea & Mackenzie Delta and 11 parcels nominated in the central Mackenzie Valley. All nominated parcels were included in subsequent Calls for Bids, both of which were launched on February 19, 2011 and closed on June 21, 2011. The Central Mackenzie Valley Call for Bids resulted in the issuance of eleven exploration licences covering 897,888 hectares and totalling $534 million of work expenditures, representing a record sale in area of lands and bid values (see Figure 1).

Figure 1: Map of the Central Mackenzie Valley Region

 

Text description of this map is available on a separate page.

The Beaufort Sea & Mackenzie Delta Call for Bids resulted in the issuance of two exploration licences covering 211,195 hectares and totalling $2 million of work expenditures (see Figure 2).

Figure 2: Map of the Beaufort Sea & Mackenzie Delta Region 

 

Text description of this map is available on a separate page.

In December 2011, one Call for Nominations was launched for the central Mackenzie Valley, closing January 31, 2012. At year end, preparations were underway for a Call for Nominations in the Beaufort Sea/Mackenzie Delta as well as in the Arctic Islands of Nunavut, planned for 2012.

When exploration results in a petroleum discovery, the legislation provides that application may be made for a declaration of significant discovery. The declaration process, administered by the National Energy Board, confirms a hydrocarbon discovery which satisfies specific technical criteria and describes the areal extent of discovery. Issuance of a significant discovery licence for lands covering the extent of the discovery is possible either:

1. upon application of the interest owner of an exploration licence subject to all or a portion of the significant discovery area, or
2. by award to the successful bidder following a call for bids in relation to all or a portion of the significant discovery area.

The significant discovery licence is a unique feature of the regime under the Canada Petroleum Resources Act. It rewards successful exploration by allowing for indefinite tenure to the petroleum discovery, recognizing that some discoveries may not be immediately economic to produce. Currently, no rentals are applied to significant discovery licences. The rights conferred by the significant discovery licence are identical to those provided under an exploration licence.

Once a developer has determined that a discovery is commercial and wishes to commence oil or gas production, legislation allows for application to the National Energy Board for a declaration of commercial discovery area. Similar to the provisions for issuance of a significant discovery licence, issuance of a production licence is possible either:

1. upon application of the interest owner of an exploration licence or significant discovery licence subject to all or a portion of the commercial discovery area; or,
2. by award to the successful bidder following a call for bids in relation to all or a portion of the commercial discovery area.

A production licence has a term of 25 years which is renewable so long as commercial production continues. Additional rights conferred under a production licence include: the exclusive right to produce petroleum from those frontier lands, and title to the petroleum so produced. Table 3 outlines land dispositions by region and by interest:

Table 3: Land Disposition as of December 31, 2011 

Region	Exploration Licence	Significant Discovery Licence	Production Licence	Former Rights1	Total
In hectares
Arctic Islands	0	332,882	0	0	332,882
Eastern Arctic Offshore	0	11,184	0	862,500	873,684
Hudson Bay2	0	0	0	126,376	126,376
Beaufort Sea	2,168,020	205,636	0	0	2,373,656
Mackenzie Delta	382,412	134,109	3,423	0	519,944
Central Mackenzie Valley	1,456,372	52,725	0	654	1,509,751
Southern Northwest Territories	0	65,729	32,842	21,107	119,678
Total	4,006,804	802,265	36,265	1,010,637	5,855,971
Region	Exploration Licence	Significant Discovery Licence	Production Licence	Former Rights1	Total
By Interest Type (number of licences)
Arctic Islands	0	20	0	0	20
Eastern Arctic Offshore	0	1	0	30	31
Hudson Bay2	0	0	0	8	8
Beaufort Sea	12	38	0	0	50
Mackenzie Delta	5	38	2	0	45
Central Mackenzie Valley	17	11	0	6	34
Southern Northwest Territories	0	31	21	8	60
Total	34	139	23	52	248

• ¹ Permits and/or Leases issued under former legislative regimes pursuant to s. 112(2) of the Canada Petroleum Resources Act  
• ² Offshore permits in Hudson Bay are under the jurisdiction of Natural Resources Canada  . Permits onshore islands in northern Hudson Bay are under the jursisdiction of Indian and Northern Affairs Canada.

Interests Issued and Terminated in 2011

The Department maintains a public registry of petroleum interests and instruments registered under Part VII of the Canada Petroleum Resources Act. This is the official record of rights holders and any transfer of rights or change of ownership must be registered. Monthly registry activity reports are available online.

In 2011, thirteen new exploration licences were awarded as a result of Calls for Bids in Beaufort Sea/Mackenzie Delta and Central Mackenzie Valley Regions. Two licences were issued to Arctic Energy & Minerals Limited for shallow water parcels in the Beaufort Sea: EL464 and EL465. The remaining eleven licences were issued for lands within the Mackenzie Plain, north and south of the Norman Wells field as follows: EL462 and EL463 to Husky Oil Operations Limited; EL467, EL468 and EL469 to Shell Canada Limited; EL470 to ConocoPhillips Canada Resources Corp.; EL471 and EL472 to Imperial Oil Resources Ventures Limited and ExxonMobil Canada Limited; EL473, EL474 and EL475 to MGM Energy Corp. and 6362 N.W.T. Limited.

Within in the Beaufort Sea/Mackenzie Delta and Central Mackenzie Valley regions, five exploration licences terminated upon expiry of Period 1 with no well drilled to extend the licence into Period 2: EL435, EL436, EL437, EL438 and EL439. Two further licences terminated by surrender: EL431 and EL441.

During this year, the Department worked with companies to effect consolidation of exploration licences pursuant to subsection 25(3) of the Canada Petroleum Resources Act. This provision allows companies to optimize exploration and operating efficiencies on lands by consolidating two or more exploration licences into a single licence. Accordingly, two new exploration licences were issued: EL461 (consolidating EL434 and EL450) to MGM Energy Corp., ConocoPhillips Canada Resources Corp., Phillips Petroleum Canada Ltd., and Phillips Petroleum Resources, Ltd.; and, EL466 (consolidating EL440 and EL454) was issued to MGM Energy Corp. and Devon NEC Corporation.

Licences which were issued, expired or surrendered in 2011 are listed in Table 4 and illustrated in Figures 1 and 2.

No significant discovery licences or production licences were issued during the year 2011.

Oil and Gas lease 529-R-69 in the southern Northwest Territories, issued under former legislation (Territorial Lands Act, Canada Oil and Gas Land Regulations), expired at the end of term on May 30, 2011.

Table 4: Exploration Licences 

• Beaufort Sea/Mackenzie Delta
• Central Mackenzie Valley - Mainland

Administration of Security Deposits

The successful winner of an exploration licence following a Call for Bids is required to post 25% of the work expenditure bid on the licence as security against the work commitment bid. During Period 1 of the licence, the Work Deposit may be refunded as the interest holder undertakes work on the licence and allowable expenditures are approved. Should expenditures during Period 1 fail to reach the original bid amount, the difference between the remaining deposit and 25% of the original work expenditure bid is forfeit. Failure to drill a well on the lands by the end of Period 1 will result in the termination of the exploration licence, and lands revert to the Crown. The drilling of an exploratory or delineation well in Period 1 allows the exploration licence to be continued into Period 2.

During Period 2, exploration licence terms require that rentals are paid annually, in advance, at the following rate per hectare: first year of Period 2 at $3.00; second year of Period 2 at $5.50; third and fourth years at $8.00. The rentals may be refunded upon application of approved allowable expenditures incurred during Period 2. Failure to pay rentals will result in termination of the licence. Should expenditures in Period 2 fail to meet the cumulative amount of the annual rentals, the difference is forfeited to the Crown.

Security deposits held for all work deposits and rentals as of December 31, 2011 totalled $626,493,078. Table 5 outlines revenues from administration of interests in 2011.

Non-refundable rentals are revenues collected from oil and gas leases issued under former legislation(the Canada Oil and Gas Land Regulations). These are payable annually, in advance of the anniversary date of the leases.

Pursuant to section 15 of Frontier Lands Registration Regulations, various fees are payable, such as, for issuance of new exploration licences, registration of instruments or provision of copies of abstracts.

Forfeitures saw a significant increase in 2011 compared to 2010. Two factors contributed: failure to drill a well on the lands by the end of Period 1 and the surrender and expiry of a number of exploration licences (see Table 4). In addition, some exploration licences terminated in 2010 but the accounting of eligible expenditures was concluded in 2011.

Significant and Commercial Discovery Declarations

There were no significant or commercial discovery declarations by the National Energy Board in 2011.

Benefits

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Enviromental Considerations

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Exploration Activities in the North

Table 6: Drilling Statistics 2011 

Well Name	Lat (NAD 27)	Long (NAD 27)	Class1	Total Depth (m)	Metres drilled in 2011	Begun	Rig Released	Well Status2	Licence3
Southern Northwest Territories
New Wells
Paramount et al CAMERON 2H-03	60° 2' 20.4"	117° 30' 6.3"	DEV	2529.2	2529.2	20-Jan-11	2-Apr-11	PR	PL17
Paramount et al CAMERON E-52	60° 1' 26.0"	117° 25' 53.3"	DEV	1412.9	1412.9	6-Feb-11	1-Apr-11	S
Re-Entries of previously drilled wells
Canadian Forest S. POINTED MOUNTAIN (D-1) L-68	60° 17' 42.8"	123° 57' 55.9"	DEL	4186		24-Aug-11	15-Oct-11	S	LEASE 838-70
Paramount et al CAMERON B-38	60° 7' 13.3"	117° 36' 19.1"	DEV	1647.4		12-Feb-11	4-Mar-11	A	PL14
Paramount et al CAMERON J-74	60° 3' 38.8"	117° 28' 55.7"	DEV	1460.3		14-Mar-11	19-Mar-11	PR	PL13
Paramount et al CAMERON M-74	60° 3' 58.8"	117° 29' 56.8"	DEV	1468.3		28-Mar-11	2-Apr-11	PR	PL13
Paramount et al CAMERON I-73	60° 2' 44.6"	117° 28' 24.5"	DEV	1633.5		20-Mar-11	22-Mar-11	PR	PL4
Paramount et al CAMERON 2M-73	60° 2' 52.3"	117° 29' 31.9"	DEL	1518.6		28-Jan-11	6-Feb-11	PR	PL4
Paramount et al CAMERON E-52	60° 1' 26.0"	117° 25' 53.3"	DEV	1412.9		3-Apr-11	6-Apr-11	S
Paramount et al CAMERON F-75	60° 4' 29.3"	117° 29' 11.0"	DEV	1458		1-Feb-11	1-Feb-11	S	PL13
Paramount et al CAMERON E-07	60° 6' 19.9"	117° 31' 37.5"	DEV	1453		7-Feb-11	8-Feb-11	S	PL14
Paramount et al CAMERON J-04	60° 3' 31.3"	117° 30' 47.8"	DEV	1444.9		25-Jan-11	27-Jan-11	S	PL13
Paramount et al CAMERON H-03	60° 2' 23.7"	117° 30' 7.7"	DEV	1657.5		22-Jan-11	25-Jan-11	S	PL17
Paramount et al CAMERON N-28	60° 7' 59.2"	117° 35' 7.6"	EX	1588.1		5-Mar-11	12-Mar-11	S	PL14
Paramount et al LIARD 2M-25	60° 24' 50.7"	123° 35' 11.8"	DEV	4316.6		11-Sep-11	16-Oct-11	S	SDL99
Frobisher HAY RIVER #4	60° 42' 18.0"	115° 53' 10.0"	TEST	194.9		20-Mar-11	23-Mar-11	Re-A
Frobisher HAY RIVER #5	60° 42' 22.0"	115° 53' 5.0"	TEST	176.5		27-Mar-11	2-Apr-11	Re-A
Frobisher HAY RIVER #5B	60° 42' 22.0"	115° 53' 10.0"	TEST	280		2-Apr-11	7-Apr-11	Re-A
Central Mackenzie Valley
New Wells
MGM et al WINDY ISLAND J-39	64° 58' 42.4"	125° 36' 22.8"	EX	1294	1294	7-Feb-11	23-Feb-11	A	EL454
Mackenzie Delta/Beaufort Sea/High Arctic/East Coast Offshore
Re-Entries of previously drilled wells
UGFI et al IKHIL K-35	68° 44' 43.7"	134° 9' 16.1"	EX	1534.1		13-Mar-11	28-Mar-11	S	PL06

South of Hay River, three old wells were re-abandoned. These wells were drilled by Frobisher Exploration Canada Ltd. in the 1940s but are currently regarded as orphan wells with no existing owner. The well heads were noted to be leaking minor amounts of gas by National Energy Board inspectors, necessitating re-abandonment to modern standards. The Department of Aboriginal Affairs and Northern Development managed well abandonment operations.

Central Mackenzie Valley

No new exploratory wells were drilled in 2011, and there was no new development drilling at Norman Wells Field.

Towards the end of 2011, Explor Geophysical Ltd. commenced a 2D seismic program in the Tulita District. This was a non-exclusive program with planned acquisition of 600 km of seismic. At year end about 59.5 km had been acquired.

In addition to this field operation, there was one authorization to purchase and reprocess existing seismic data.

Mackenzie Delta

No exploration wells were drilled or seismic surveys conducted onshore the Mackenzie Delta in 2011. Beaufort Sea

There was no drilling or seismic acquisition in the Beaufort Sea in 2011.

Arctic Islands of Nunavut

There was no industry exploration or development activity in this region in 2011.

Eastern Arctic Offshore

There was no industry exploration or development activity in Canadian waters in 2011. The eastern half of Baffin Bay, however, saw five wells drilled by Cairn Energy PLC on licences acquired from the Greenland government. No discovery has been announced.

 [Note: The Frontier Information Office of the National Energy Board is the primary source of operational data cited above.]

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Production

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Royalties

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Further Information

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