Brent Reaney
Northern News Services

Yellowknife (June 06/05) - Imperial Oil's halting of non-technical work on the Mackenzie Gas Project does not seem to have affected bids for oil and gas exploration licences in the South Mackenzie region.

In fact, the six licences granted and $58 million in bids received "compares favourably with the results of previous calls," said Giles Morrell, senior petroleum geologist with the Oil and Gas Directorate of the Department of Indian Affairs and Northern Development (DIAND).

Total bid amounts Licence 428, 430 Apache Canada Ltd. and Paramount Resources Ltd. - $3,355,000 each Licence 429, 432 BG Canada Exploration and Production Inc. - $12,375,000; International Frontier Resources Corp. - $4,125,000 License: 431, 433 Petro-Canada - $34,915,836

"This is quite a positive result. It shows confidence in the geological potential of the Northwest Territories," said Morrell.

In its late April stop-work decision, Imperial blamed an unclear regulatory process and aboriginal land access demands that it said were beyond the scope of the project.

Companies had time to reconsider their options as the closing date for licence bids wasn't until May 16.

"We are continuing to monitor progress on the Mackenzie Valley Pipeline with interest," said Petro-Canada spokesperson Susan Braungart.

Petro-Canada received two of the six licences and has promised to spend almost $35 million on exploration over the next four years.

If the required dollar amount is not spent, the company forfeits the 25 per cent deposit it paid to DIAND.

Braungart said Petro-Canada does not reveal strategic plans such as whether the uncertainty surrounding the $7 billion pipeline affected the company's bidding strategy.

A total of 358,089 hectares were included in this year's licences and the $162 per hectare bid was higher than ever before, Morrell said, adding that more dollars per hectare could mean more intensive work is being done.

As for the currently-stalled pipeline project, a discussion involving aboriginal, territorial and federal government officials has been scheduled for June 15 during the Inuvik petroleum show.

"I think we have some good news to report," said Fred Carmichael, chair of the Aboriginal Pipeline Group.

Daily meetings

Though he declined to discuss the details of any pending announcement, Carmichael said he has held meetings "every day" with various pipeline stakeholders.

As of press time, Deputy Prime Minister Anne McLellan and DIAND Minister Andy Scott's attendance at the petroleum show meeting was not confirmed.