Norm Poole
Northern News Services

Inuvik (Mar 17/03) - Gas and oil exploration activity in the Inuvik region is down significantly from last winter's boom.

"Activity in the Delta is down about 75 or 80 per cent from last winter," said the GNWT's Robert Redshaw, with the Mackenzie Valley project office.

Last year about 1,300 people were employed in oil and gas in the Inuvik region alone.

This winter there are about 300, Redshaw estimated.

One reason is the extent of seismic work done in the region during 2002.

That totalled about 15,000 linear kilometres -- 15 times what exploration firms were projecting for this winter.

"Seismic is labor intensive, much more so than drilling," said Redshaw, with RWED's Mackenzie Valley project office.

"Last year was also extreme in terms of the amount of seismic activity. We won't likely see a return to that level again."

Drilling activity is also down in the Delta.

Five companies active in the region planned three to five wells, employing three rigs.

Redshaw said reduced drilling activity is typical after a busy seismic season.

Some firms haven't yet targeted wells based on their 2002 seismic programs, he noted, while others may have the data they want but are waiting before drilling.

"The pipeline is still a long way off -- two years at least until it moves through environmental assessment and a decision is made on whether to build it."

Devon Canada is currently drilling one well (Itiginkpak 29) near Inuvik in partnership with Shell, with plans for a second based on the results.

"We expect to reach our target on the first one very shortly, then we will make an assessment on whether to proceed," said Devon's Michael Scott.

Any positive announcement on the pipeline would probably spur more activity in the Delta, he noted.

"Not necessarily for us -- we have been active for the last three years. But certainly anything that can create more certainty over the pipeline is going to be positive in terms of exploration."

Devon also holds four large offshore blocks in the Beaufort Sea where it has done extensive 3D seismic testing over the past two seasons.

"We have completed about 1,800 kilometres over the past two seasons," said Scott.

"We are currently working at identifying prospects and drilling targets. We are working toward potentially drilling in the Beaufort during the winter of 2004-05, but more likely it would be 2005-06."

That would be subject to regulatory approval and the company's own internal review, he added.

The wells would be the first drilled in the Beaufort since the 1980s.

Redshaw estimates that about between $150-$180 million will be spent on oil and gas exploration in NWT this winter, with about 900 workers employed.

The Deh Cho region is busy again after a relatively flat season last winter.

"It is probably three or four times busier than last year," said Redshaw.

Paramount Resources planned to drill three new wells in the Cameron Hills and re-enter three others.

Andarko/Paramount planned two wells at Bovie Lake and between six and 11 at Arrowhead, depending on how drilling proceeded.

In the Sahtu, CNRL and Apache/Paramount are drilling near Colville Lake, with either four or five wells to be completed by the end of the season.

"That is significant because the Sahtu had only one minor project last year," Redshaw said. "It is especially good to see drilling at Colville Lake. Until this winter there hadn't been much done in there for several years."