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Exploratory well to be drilled in Tulita

Stephanie McDonald
Northern News Services
Monday, April 23, 2007

FORT NORMAN - A consortium of oil and gas companies plans to drill a new exploratory well in the Tulita area next winter.

The group, which includes project operator Husky Oil, International Frontier Resources, Northrock Resources, EOG Resources Canada, and Pacific Rhodera Energy, did seismic work in the area last summer.

NNSL Photo/Graphic

A drill stands above the mountains at Husky Oil's well at Summit Creek. A consortium of energy companies plans to drill another well this winter in the Tulita area. - photo courtesy of Husky Energy Inc.

"We've interpreted the data and it's giving us a couple prospect leads in the area," said Pat Boswell, president and chief executive officer of International Frontier Resources. One of these leads will be where the well will be drilled.

The consortium has spent $162 million on the project. International Frontier Resources, which has a five to 25 per cent share in the project, recently raised $22.7 million. $7.2 million of which will be spent in the NWT in the next 18 months.

The group has so far drilled seven wells in the area, resulting in two discoveries, two wells that require additional tests, and three dry holes.

One of the discoveries, the Summit Creek B44 well, flows at rates of up to 10,000 barrels of oil a day. The second well, Stewart D57, flows gas at a rate of five million cubic feet a day.

"They are not on production yet," Boswell said. "We are waiting for the Mackenzie Valley Gas Pipeline to come down."

There has been speculation in the past that the consortium would hook up to the Enbridge-owned pipeline. Boswell said that at this time, there is not enough information to say if they will connect with the pipeline or not.

"We have to drill to prove up enough reserves so we can justify putting in a pipeline and tying it into either the Enbridge line or the Mackenzie Valley Pipeline," said Boswell. The Enbridge oil pipeline runs from Norman Wells to Zama, Alberta.

When asked if uncertainty over the Mackenzie Valley Pipeline would delay the project, Graham White, senior communications advisor with Husky Energy said "absolutely not." He declined to comment further on the company's work in the area.

Chief Albert Wright School in Tulita has received funds from a couple of the energy companies for its Breakfast Program.

Principal Wayne Dawe came to the school four years ago. "I quickly realized students were coming to school in a hurry... they were drinking pop or eating chips and Popsicle's."

Dawe wrote proposals to several organizations in the community and received funding for a breakfast program from Mackay Range Contracting, Tulita Land Financial, and Northrock Resources. The Tulita Dene Band also provides funds.

The program is now in its third year, and for the past two Husky Energy has donated $20,000, the bulk of the program's budget.

Of a school population of 168, approximately 100 come to eat breakfast each school day.

"Our attendance has increased dramatically," Dawe said. The number of graduates has increased each year since the program began.

"When you get school kids waiting on the steps, waiting for doors to open at ten to eight, it tells me a lot."