YELLOWKNIFE - Despite uncertainty over the proposed Mackenzie Valley pipeline, oil and gas activity in the NWT is set to increase in the next couple of years.

"Potentially there is quite a bit of work next year," said John Pahl, vice-president of marketing north for Akita Drilling.

Chevron's rig 64 has finished drilling one well and is starting on a second one 100 kilometres west of Tuktoyaktuk. - photo courtesy of John Pahl

"We're drilling contractors so we're at the mercy of the operator," he said.

Pahl reported MGM Energy - the recent spinout of Paramount Resources' Delta and Colville Hills properties - is planning an extensive program in the Delta in the coming two years.

In addition, there are potentially 10 wells that could be drilled in the Sahtu in 2008. A variety of operators have expressed interest, including Talisman, Petro Canada, Husky and Kodiak.

The 10 wells represent a substantial increase from previous years.

"There was nothing drilled in the Sahtu this year," Pahl said, adding in 2006 there were two wells drilled and in 2005 there were four. Pahl was quick to caution that all of these projects are "pipeline dependent."

According to the National Energy Board (NEB) there are currently five new wells being drilled: two in the Cameron Hills and three in the Delta.

"Anyone drilling in the Delta is betting heavily that the pipeline will go ahead," Paul said.

The NEB also reported three re-entries are planned for this year in the Cameron Hills and two others in the Delta. After this year there will be 20 to 25 active wells in the territories.

There have been 15 to 20 geological or seismic activities over the past year in the NWT, according to the NEB.

"'There is optimism, but there is some uncertainty," said Bharat Dixit, NEB chief conservation officer.

"Most players are waiting for some clarity in terms of where the Mackenzie project is going and as a result they are being cautious."

Pahl attended the recent Arctic Gas Symposium in Calgary and said while this is the seventh year the conference has happened, the topics were the same as they have been every year.

"Certainly there was a lot more frustration voiced over the length of time it is taking to build the pipeline," he said.

Liidlii Kue First Nation Chief Keyna was a speaker at the Calgary symposium.

"A lot of large companies feel that they may be pressured into working with First Nations," she said. Her job was to "enlighten" them about the role First Nations groups could play.

"They should be happy to enable us to be self-sustaining so that we're not so dependent on the government," she said.

"We are capable of being businesspeople and in business."

Like Pahl, Norwegian has noticed increased frustration over the lengthy pipeline discussions.

"People are getting tired of being told, 'Just wait,'" she said.