by Mark Sproxton
Northern News Services

NNSL (Jan20/97) - The federal government hopes issuing two oil and gas exploration licences for the Mackenzie Delta will renew industry's interest in the region.

"That's one of the things we hope this will do," said Lucie Napert of the Northern Oil and Gas Directorate in Ottawa.

The licences issued last week allow Husky Oil Operations and Gulf Canada to explore 214,088 hectares in areas near Inuvik and Tuktoyaktuk.

But activity on these properties likely is a few years down the road.

"Over the next few years we'll review available geological data," said Bonnie Pascal, Husky's corporate communications manager.

"If we find favorable data we will do some seismic work. But we'll be doing analysis work in Calgary for now."

And with the price of a barrel of oil remaining in the $25 range for a while, this, too, could be a boon for exploration in the region.

"The high price of oil means more cash flow in the companies," Napert said. "When you have good cash flow you can afford to put some in the high risk category and explore off-shore."

Ottawa also hopes a call to industry to nominate areas they would like to work will draw more attention to an area that boasts 53 significant oil and gas discoveries.

The call for nominations opens today and closes April 4.

The Husky and Gulf licences have been divided into two phases for a total of nine years. In the first six years, rental for the land is $1 per hectare and is fully refundable if work is conducted.

For years 7 to 9, rental cost per hectare jumps to over $7 and up, and is only refundable if a well is drilled.

The region has seen seven exploration licences issued in the Inuvialuit Settlement Region since 1989. The last licences issued were in 1991, when four parcels -- three in the Delta and one off-shore -- drew $55 million in bids.

The licences issued last week were in exchange for the surrender of 21 former exploration permits in the Cape Bathurst area.

The deal reached with the oil companies gives the Inuvialuit title to the Cape Bathurst area as outlined in the Inuvialuit Final Agreement.