Fort Norman (May 22/06) - Husky Energy Inc. has found more natural gas in the Central Mackenzie Valley.

On Wednesday, the Calgary-based firm said a well drilled about 90 km southwest of Tulita has the potential for gas flows of five million cubic feet per day.

The name of the exact site is known as the Stewart D-57 on Husky's M-38 parcel of land.

It's too early to quantify the significance of results at Stewart D-57, said Colin Luciuk, manager of investor relations and corporate communications for Husky Oil.

Luciuk added that its "always encouraging" to find potential energy reserves. The discovery was the first cretaceous hydrocarbon natural gas find in the region.

This find comes two years after gas and oil were discovered at Husky's Summit Creek site, 24 km away.

Wells drilled at Summit Creek tested gas flows at 20 million cubic feet per day and 6,000 barrels per day of light oil and condensate.

The find comes after companies successfully bid a combined $70.7 million for the rights to explore six parcels of land in the Central Mackenzie Valley.

The parcels of land were awarded by the Department of Indian and Northern Affairs to exploration companies.

More interest may be sparked in the area with successful exploration already being carried out, said Pat Boswell, president and chief executive officer with International Frontier Resources Corporation.

"I think it's a sign of the future," said Boswell.

Currently, International Frontier is in partnership with Husky Oil for the M-38 parcel, as well as the new parcel recently awarded, known as CMV-6 which was awarded for $10.5 million.

Boswell estimates that $9 million-$12 million will be spent on winter exploration. A winter road will also have to be built at a cost $6 million-$10 million, he said.

"We've created a lot of work in the region," said Boswell, who estimates a staff of 70-90 will be hired for summer seismic work.

Other companies that have received new exploration rights include Talisman Energy Inc. and Devon ARL Corp. The two companies each have 50 per cent ownership on four parcels of land. Their total dollar bid for all the four parcels was $53.9 million.

Paramount Resources Ltd. has complete ownership of one parcel of land which was acquired with a successful bid of $10.5 million.