Doug Ashbury
Northern News Services

NNSL (July 05/99) - Denendeh Development Corporation, the economic arm of the Dene Nation, has bought Imperial Oil's 50 per cent stake in Shehtah Drilling for $2.4 million, it was announced last week.

Prior to the sale, the development corporation was 50 per cent owner.

The move means Shehtah, which owns and operates two drilling rigs and two service rigs at Imperial Oil's Norman Wells field, can attempt to expand its drilling presence in the North.

"Now that Shehtah is fully owned by the Denendeh Development Corp., we believe Shehtah is positioned to work with other (resource companies)," Howard Dingle, Imperial Oil operations vice-president, said.

Full Aboriginal ownership of Shehtah is something Imperial Oil "wanted and expected to happen," he said.

Shehtah was formed in 1983 as a joint venture of Imperial, then Esso Resources Canada, the Dene Nation and the Metis Association of the NWT. The Dene purchased the Metis interest in 1996.

Shehtah's Norman Wells well-service contract with Imperial will continue. And over the past 16 years, Shehtah has served as drilling contractor for Imperial's Norman Wells operation successfully drilling over 125 wells in the Norman Wells area.

The drilling company employs 47 full and part-time staff, 80 per cent are Northern Aboriginal.

Shehtah chairman Greg Nyuli said the company will continue to operate under existing management. Plans are in place to hire and train a Northern manager.

Nyuli also said Shehtah's equipment will be expanded and upgraded. Owners also plan to increase community employment and training.

Over the next 18 months, Denendeh Development will provide $1 million in new capital for improvements to Shehtah's equipment and operations. And over the next two years the corporation will also provide up to $50,000 a year for education and training programs aimed at increasing aboriginal opportunities.

"We have brought ownership of Shehtah home to our people in the NWT," Nyuli said.

By September, the company's head office will be moved to Yellowknife. Shehtah will continue to have offices in Calgary.

After resignation of Shehteh's three Imperial Oil directors, Denendeh Development directors Chief Nyuli of Fort Providence, Chief James Firth of Inuvik and Sub-chief Anthony Grandjambe of Fort Good Hope will continue as officers and directors of the company.

"We have dreamed of making this company a success for several years, now we are bringing it home," John Bekale, Denendeh Development president and chairman said.

With the recent discovery at Fort Liard, the "timing is perfect," Bekale, recently appointed a director of Shehtah, said.

"Shehtah has an exceptional safety record. Our employees have won a number of safety and workmanship awards over the years. We have a good company, and our own people have contributed to our success."

Chevron Canada recently announced its K-29 well is among the largest natural gas discoveries ever made in Canada. Chevron estimated the well's potential production rate at 70-100 million cubic feet a day. The discovery is estimated at 400-600 billion cubic feet. Last year, Ranger Oil estimated a natural gas discovery of 200 billion cubic feet, also near Liard.