by Nancy Gardiner
Northern News Services

NNSL (May 19/97) - A 1996 call for oil exploration bids in the central Mackenzie Valley resulted in more than $35 million in bids received for seven of 11 parcels of land.

The call for nominations went out in November 1996 and closed on May 1.

The amount of the bids reflect what companies are committing to spend on pure exploration on the properties. That includes seismic and geophysical work.

Terms of the licences awarded for exploration are eight years, divided into two periods of four years.

Awards went to AEC West, Canadian Abraxas Petroleum Ltd., Cascade Oil and Gas and International Frontier Resources. Other parcels went to Grand River Resources, Murphy Oil Company and Ranger Oil Ltd.

Hiram Beaubier, director general of natural resources and the environment with the Department of Indian and Northern Affairs, says the bids were more successful this year than in previous years.

There were more companies and higher values of bids. "I think the stability of oil prices, although they're not really high, helped," said Beaubier.

Due to increasing competition in northern B.C. and Alberta, exploration companies are looking elsewhere too.

And the infrastructure of the Norman Wells pipeline makes the Sahtu attractive for exploration.

There's also been activity in Fort Liard, to the tune of $43 million over two years in gas exploration activity.

In 1995, there were eight bids on eight parcels of land for $23 million. Then in 1996, there were six bids on eight parcels, according to Beaubier.