Fort Norman (Apr 11/05) - Impressive initial results from an exploratory well near Tulita has people wondering just how much oil and gas could be under the ground around this Sahtu community.

A consortium of oil and gas companies say they're encouraged by what they've found, but want to do more tests to determine the size of the discovery, 56 kilometres southwest of Tulita.

Fact File The working-interest owners in the Summit Creek B-44 well include: Northrock Resources 32.5 per cent Husky Oil, 29.4775 per cent EOG Resources Canada, 26.3975 per cent Pacific Rhodera Energy, 6.625 per cent International Frontier Resources Corp., five per cent.

In order to assess the size of the find, underground three-dimensional (3-D) modelling must be undertaken and appraisal wells need to be drilled, said Pat Boswell, president of International Frontier Resources, which owns a five per cent interest in the property. Dave Pearce, president of Northrock Resources which owns a 32.5 per cent share, is cautious in how he characterizes the find.

The flow rate on two zones on the Summit Creek B-44 well was measured at a combined rate of 20 million cubic feet per day of natural gas and 6,000 barrels of oil-condensates per day on a one-inch choke.

At that rate, the value of gas coming out of that one well could be worth $150,000 a day.

Andy Graw, a manager of the petroleum products division with the Department of Indian Affairs and Northern Development in Yellowknife, said this was the first well drilled by the consortium that showed significant hydrocarbons.

"In order to make it economic they would have to have more than one well," he said.

Norman Wells Mayor Ann Marie Tout said the discovery "will generate exploration of a field of unknown size, waiting to be tapped."

While the oil being produced by the well is only a fraction of the natural gas being produced, Tout added "it's not insignificant. It provides more support for the Mackenzie Gas Project."

Eddie Mcpherson Jr., president of Red Dog Mtn. Contractors said, "the benefits to Tulita can be very substantial.

"I think the majority of the people would like it to go as long as the lands are looked after."

Clouding the picture is the fact Northrock's owner, Unocal, was purchased by ChevronTexaco on April 3 for $16.8 billion.

ChevronTexaco is now rumoured to be selling some aspects of Unocal, Pearce confirmed. As well, ChevronTexaco is reported to be looking to sell off Unocal's Canadian assets, which includes holdings in the NWT, Alberta and Saskatchewan.