Fort Norman (Aug 28/06) - There could soon be Tulita oil gurgling down the existing Norman Wells pipeline if Husky Energy likes what it sees in the area.

The company's "short-term plans" include hooking into the Enbridge-owned line to get its oil south to Zama, Alta., and beyond, according to Graham White, senior communications advisor with Husky Energy.

The oil under this Summit Creek B-44 wellhead near Tulita could end up in the Enbridge pipeline even before the proposed Mackenzie Valley natural gas line becomes a reality. - photo courtesy of International Frontier Resources

"It's a possibility, if the resources are there," he said.

Thus far, the company, along with its project partners International Frontier Resources, Pacific Rodera Energy, EOG Resources Canada and Northrock Resources, have drilled two successful wells in the area.

The first of which, Summit Creek B-44, showed flow rates of more than 6,000 barrels of light oil and 20 million cubic feet of natural gas per day.

The Enbridge pipeline has the capacity to transport 30,000 barrels of oil per day and it hasn't been operating at capacity in recent years according to the Department of Industry, Tourism and Investment.

Calls to Enbridge were not returned prior to press time.

Earlier this year, Husky announced the second well, Stewart D-57, showed gas flow rates of about five million cubic feet per day. There is the potential for up to a billion barrels of oil in a number of pockets around Tulita according to the latest geo-chemical surveys, said Mark Powell, vice-president of exploration for International Frontier Resources Corporation.

That's why the exploration group decided to focus on seismic work this year and shelve plans for drilling during the coming season, he said.

"We need to get our breath and know exactly what we are going for," said Powell.

Roughly $12 million to $13 million is being spent on seismic exploration this summer and is expected to be complete by sometime in September, he said. "There have been some tantalizing results so far."

In Tulita, the ideas of seismic replacing drilling and oil entering the Enbridge line in the next few of years sit well with most.

A committee of Sahtu elders is in negotiations with Husky Energy to look after residents' interests, said Bobby Clement Jr., communications officer for the Tulita Yamouria Community Secretariat.

"The community of Tulita wants work," he said. "But at the same time it is being cautious about development."

Between 30 to 40 residents of the region are working on the seismic project this summer, he added.