Province gives BC First Nations quarter million for offshore exploration
MacKay Range Development Corp. looking to control the destiny of their people
Curlew Lake announces historic oil & gas agreement with Métis Moccasin Resources
Western Lakota and Savanna to merge
Samson Oil & Gas purchases chunk of Command Coil
Council votes to slow down oilsands development
Alberta’s labour shortage just the tip of the iceberg
Imperial Oil donates $3 million for education and skills development
Province gives BC First Nations quarter million for offshore exploration
The Nisga'a are getting more than a-quarter-million dollars from the BC government to explore the economic potential of offshore oil and gas development.
Nisga'a president Nelson Leeson says the $283 thousand will allow his citizens to identify new opportunities.
A federal moratorium on offshore development has been in place since 1971. But BC Energy Minister Richard Neufeld says offshore oil and gas is a potential economic opportunity and First Nations communities should share in the benefits.
The Nisga'a government will conduct workshops in the Nass Valley and Vancouver, Terrace and Prince Rupert and arrange a fact-finding trip to Alaska's Cook Inlet.
Nisga'a people will then be surveyed for their views and recommendations will follow.
MacKay Range Development Corp. looking to control the destiny of their people
At MacKay Range Development Corporation, we seek out and work with highly regarded business partners who share our vision of the North and the Sahtu Region. We pride ourselves on being innovative in our business approach – seeking a balance between local involvement and benefit and overall viability and profitability of each enterprise. Our mission is to protect local economic and conserve the wildlife and environment of the settlement area for present and future generations. It is our intent to leave a legacy of good business, education and long-term security for our children and grandchildren.
Mackay Range Corporation ensures that the business opportunities of the region are recognized and acted on - as to ensure local involvement and economic benefit by collaborating and educating business partners on how to work within the terms of the Sahtu Dene Metis Comprehensive Land Claim Agreement (SDMCLCA), effective June 23, 1994. Plus act as a liaison between the community at large and their rights as Aboriginal peoples and industry businesses wanting to use the region’s natural and human resources. Mackay Range Oilfield Services, a division of Mackay Range Development Corporation, actively select partners in industry; they effectively control the destiny of their people, preserve their heritage, and regulate the land around them, while providing opportunities for growth, financial security and education for their community. These opportunities are provided mostly by the oil and gas industry’s reputable companies offering services such as seismic surveys, mapping and surveys, trucking and oilfield services, safety, sleigh camps, drilling, helicopter services, fixed wing air services, pipelines, general contractors and road construction and more.
Mackay Range also assists in ensuring that a strong labor force is available, through partnership sponsored meetings, gatherings, and training sessions by collaborating with International, National, Territorial and Local Businesses to locate human resources, provide local knowledge, equipment and other resources from their home and backyard. Mackay Range Corporation, through proper procedures and regulation, in turn, offers their business partners opportunity to tap into the northern region’s untouched natural resources.
Our office is located in Tulita, which is situated on the Northern Bank of the MacKenzie River at its junction with the Great Bear River.
2006 and moving forward are exciting and promising times for our area. Please visit our web site at www.mackayrange.com for updates on activities and events. For information, please contact Wilbert Menacho, President at 1.867.588.3051 or e-mail to: wilbert@mackayrange.com
Curlew Lake announces historic oil & gas agreement with Métis Moccasin Resources
Curlew Lake Resources Inc. (TSX VENTURE: CWQ) (PINK SHEETS: CWLXF) announced that it has entered into a significant joint venture agreement with Métis Moccasin Resources Inc., a private Alberta company, and Propel Energy Corp., a private Alberta company. Under this agreement Curlew Lake will have the right to acquire a 47.5% working interest before payout, convertible to 33.33% after payout, in oil and natural gas leases secured by the joint venture partners on Métis Settlement lands. The joint venture plans to continue acquiring oil and natural gas leases on Métis Settlement lands. Métis Settlement Lands in Alberta include a total of 17 Townships (36 square miles per Township), within the eight Settlements on the Lands.
They are also very pleased to report that Métis Moccasin Resources has successfully completed the acquisition of an initial 10 sections (6400 acres) of oil and natural gas leases on the Kikino Métis Settlement lands northeast of Edmonton, Alberta. The leases purchased are considered prime Alberta oil and gas property, surrounded by shallow natural gas production. Production in this area comes from up to four horizons, and provides the joint venture with the potential for substantial low risk shallow natural gas production. The initial operator of the project will be Métis Moccasin Resources Inc., with Frontier Engineering and Consulting Limited of Calgary to be retained as contract operator. It is expected that a multi-well drilling program will commence in early fall 2006.
The company is grateful to be given this historic opportunity. Management of Curlew Lake Resources Inc. believes that being involved in the Métis Moccasin joint venture provides the potential to add significantly to shareholder value, while at the same time providing substantial benefit to the Métis Settlements and people.
The company presently has small pre-payout royalty income from two deep gas wells in the Turner Valley area of Alberta, and expects income from two additional completed gas wells in the same area, along with a 25% interest in an oil well being prepared for production in Saskatchewan. Curlew Lake currently trades at about 10 cents per share with a market cap of less then six million dollars. The company is debt free and expects to be in a net income position in the current year.
The company has completed a private placement to fund its share of the initial land acquisition, consisting of $525,000 for 5,250,000 common shares in the ccompany. The company has entered into a consulting agreement with Frontier Engineering and Consulting Ltd. Of Calgary, and as a condition of this agreement Frontier Engineering and Consulting Ltd. has been granted an option to purchase one million shares in the company for the price of $0.10 per share for a period of five years.
Western Lakota and Savanna to merge
Savanna Energy Services Corp. ("Savanna') (TSX:SVY) and Western Lakota Energy Services Inc. ("Western Lakota") (TSX:WLE) announced June 20th that their respective Boards of Directors have unanimously approved and the companies have entered into an agreement to merge the two companies. The combined organization will be a Canadian-headquartered, North American oilfield services company with an enterprise value approaching $1.5 billion. Upon completion of the transaction the merged company will operate under the name "Savanna Energy Services Corp."
Under the terms of the agreement, the merger will be accomplished through a Plan of Arrangement under the Business Corporations Act of Alberta (the "Arrangement") whereby Western Lakota common shareholders will receive 0.64 of a common share of Savanna ("Savanna Share") for each common share of Western Lakota ("Western Lakota Share") held. On completion of the proposed transaction, Savanna shareholders will own approximately 51.5% and Western Lakota shareholders will own approximately 48.5% of the combined entity.
The proposed Arrangement is subject to approvals by at least two thirds of the holders of Western Lakota common shares and holders of Western Lakota options, the Court of Queen's Bench of Alberta, and appropriate regulatory and other authorities. The Western Lakota shareholders' meeting required to approve the Arrangement will be held, and the closing of the Arrangement is anticipated to be completed by, September, 2006. An information circular is expected to be mailed to Western Lakota shareholders in July, 2006.
The respective Boards of Directors of both Western Lakota and Savanna have unanimously approved the Arrangement and have concluded that the transaction is in the best interests of the Western Lakota and Savanna shareholders and option holders. The Board of Directors and senior management of Western Lakota have entered into agreements with Savanna to vote in favour of the Arrangement and unanimously recommend that Western Lakota shareholders and option holders vote in favor of the Arrangement.
The Arrangement Agreement prohibits both Western Lakota and Savanna from soliciting or initiating any discussion regarding any other business combination or sale of material assets, contains provisions to match competing unsolicited proposals and subject to certain conditions, provides for a $23 million reciprocal termination fee.
Mr. Elson McDougald, Western Lakota Chairman and Chief Executive Officer, will serve as Chairman and Mr. Ken Mullen will serve as President and Chief Executive Officer of the merged company. All senior management from both Western Lakota and Savanna will remain with the combined organization and each have agreed to waive all change of control, option vesting and severance terms under their respective employment option agreements and employment contracts.
The Board of Directors of the combined company will consist of members from both of the existing Boards of Directors of Western Lakota and Savanna.
The merged company creates a new growth oriented North American contract drilling and oilfield services powerhouse with:
- A full service drilling capability combining proprietary hybrid shallow technology with state-of-the-art deeper drilling capabilities;
- Industry-dominant relationships and contracts with Aboriginal partners throughout Canada;
- Industry leading shallow drilling capabilities based on patented hybrid drilling technology;
- A substantial organization focused on providing efficient high quality services to its customers utilizing one of the most modern fleets of equipment, with an average age of equipment in the combined company of less than 5 years;
- An operating base of 66 conventional and hybrid drilling rigs, 35 wireline units, 20 well servicing rigs, 8 casing/coring rigs and 5 coil service rigs;
- A forecasted exit 2006 calendar year operating base of 85 conventional and hybrid drilling rigs, 37 wireline units, 22 well servicing rigs, 18 casing/coring rigs and 8 coil service rigs;
- A complementary customer base coupled with non-overlapping operating assets, enabling the combined company to provide unparalleled cross-selling potential;
- The third largest enterprise value of all publicly listed and traded drillin companies in Canada;
- A superior operating and financial growth profile featuring expected lower cost of capital for the combined company and better liquidity for shareholders.
The value of this merger is driven by the tremendous opportunities the combination presents to both companies to expand on each of its strengths. The Aboriginal relationships will facilitate the introduction of industry dominant hybrid drilling and well servicing to a whole new group of customers and regions. The availability of Western Lakota's deeper drilling expertise will accelerate and enhance the expansion of Savanna's current growth plans in the deeper contract drilling market. Finally, the combined company will have a U.S. base from which to develop and grow both a deeper and hybrid-shallow drilling presence in the United States market.
In an industry suffering from a shortage of top quartile senior management personnel, operations management personnel and field employees, the merged company will provide unparalleled career opportunities to existing and new employees. As well as capitalizing on the existing Aboriginal training initiatives of Western Lakota and their substantial current Aboriginal employment base, the merged company will also accelerate the introduction of this program across Savanna's hybrid drilling, well servicing and wireline businesses.
With a combined 2006 capital expansion program of $240 million and substantial growth plans, the merged company will ultimately reap the benefits of having one of the largest growth potentials of any oilfield service company in North America.
Peters & Co. Limited acted as financial advisors to the Board of Directors of Western Lakota and it is of the opinion, as of the date hereof, that the consideration to be received by the holders of Western Lakota Shares and Western Lakota options pursuant to the Arrangement Agreement is fair, from a financial point of view to the holders of Western Lakota Shares and Western Lakota options. RBC Capital Markets and FirstEnergy Capital Corp. acted as financial advisors to the Board of Directors of Savanna and the Special Committee of the Board of Directors of Savanna respectively. FirstEnergy Capital Corp. has also advised the Special Committee of the Board of Directors of Savanna, that it is of the opinion, as of the date hereof, that the consideration under the transaction is fair, from a financial point of view, to Savanna.
Samson Oil & Gas purchases chunk of Command Coil
Western Lakota Energy Services Inc. (TSX:WLE) has announced that Samson Oil and Gas Inc., a Samson Cree Nation company, has purchased a 50% interest in the operating assets of Command Coil Services Inc. for $4,500,000.
The assets include five coil tubing service units and related inventory and equipment. These coil tubing service units will be operated through Command Coil Services Limited Partnership, which is equally owned by Samson Oil and Gas Inc. and Command Coil Services Inc. Command Coil Services Inc. is a wholly-owned subsidiary of Western Lakota Energy Services Inc.
One of Canada's fastest growing energy services providers, Western Lakota is currently operating 40 drilling rigs, including nine CBM/oil sands coring/pre-set rigs and has committed to build an additional 19 rigs as part of its 2006 Construction Plan which remains on schedule. The company also operates five coil tubing service units with an additional three scheduled to be completed throughout 2006. Western Lakota continues to provide one of the newest fleets of safe and efficient drilling rigs and coil tubing service units in Canada while delivering strong results for shareholders, customers and Aboriginal partners.
Council votes to slow down oilsands development
By Larissa Liepens CP
The mayor and council in the booming northern Alberta city of Ft. McMurray voted unanimously June 13th to try and put the brakes on all future oilsands development until something is done to improve the area's infrastructure.
Specifically, Mayor Melissa Blake and the council for the Municipality of Wood Buffalo agreed to apply for intervenor status when oilsands giant Suncor (TSX:SU) goes to the Alberta Energy and Utilities Board on July 5 to apply for an expansion of its operations.
However, they also decided to take the same action for any future application by any other oilsands company.
``There's going to be a definite impact on how much the oilsands itself can advance and progress if we can't get our housing situation under control,'' said Blake.
``We can't get people to move to the community. Then we'll start losing business services ... we need to get more people working in service and hospitality.''
Blake said the province and the oilsands companies must provide more funding to improve community infrastructure, or at the very least, bring in the skilled labour to help build infrastructure projects.
For instance, Syncrude recently donated $2.5 million to an athletic park as well as the skilled labour to build it.
Blake said that with the help of the Alberta Urban Municipalities Association, the city has been pushing for the right to tax oilsands companies separately from normal businesses, but the province has yet to review and approve the proposal.
``What we really need to drive home is the point that the community is not able to proceed any further with the limitations that we have,'' she said.
``We cannot continue to accommodate debt and debt and debt on the municipality's back and not have something to offset that.''
The municipality estimates it will be carrying $263 million in debt by the end of this year.
Suncor spokeswoman Darcie Park said she wasn't surprised by council's decision to hold a vote on the issue.
``We do totally respect the municipality's right to intervene, if they decide that that is necessary,'' Park said.
``We've been consulting extensively with our stakeholders and we're working hard to resolve outstanding issues.''
A municipal task force heard recently from about a dozen residents of Fort Chipewyan, many of them First Nations and Metis people who say the land and water they have relied on for their traditional way of life has been destroyed.
Falling water levels have dried up the rich hunting grounds of the delta, where the Athabasca River empties into Lake Athabasca south of town, presenters said.
``The delta is a natural filter for crap, and we're sitting in the toilet bowl,'' said resident Ernest Thacker.
Many residents also believe the Athabasca River, the source of drinking water for the hamlet, is contaminated by unnamed cancer-causing agents released by oilsands plants.
``Long ago, we lived in the bush and ate everything,'' said Mary Rose Waquan, 84. ``Now the moose meat and ducks don't taste as good, the wild plants we ate don't grow along the river, and the water isn't fit to drink.''
Alberta’s labour shortage just the tip of the iceberg
Alberta's labour crunch is likely to get worse, as the province's annual shortfall of workers would reach 332,000 by 2025 if current trends were to continue, the Conference Board estimates.
"The well-publicized current labour shortage in Alberta is just the tip of the iceberg," said Glen Hodgson, Vice-President and Chief Economist. "Something will have to give, as no economy can sustain such a huge and growing gap between labour demand and supply. If faster growth in labour productivity does not make up for the shortage in workers, the province will be unable to achieve its economic growth potential."
Markets will adjust to compensate for the labour crunch. A rapid increase in wages is a likely outcome, driving companies to substitute capital for labour and to increase labour productivity. Higher wages could also make some projects so expensive that they would not take place, thereby delaying capital investment, and reducing potential economic growth.
While no one solution exists, the Conference Board's briefing, Alberta's Labour Shortage: Just the Tip of the Iceberg, suggests several actions that would ease the shortage. These include attracting more immigrants to Alberta, doing a better job of recognizing foreign credentials, improving training and apprenticeship programs, implementing labour mobility agreements with other provinces beyond its recent pact with British Columbia, and encouraging Aboriginal Canadians and older workers to enter or remain in the workforce. Even more innovative approaches may need to be considered to attract workers from within Canada and abroad.
Imperial Oil donates $3 million for education and skills development
Imperial Oil is donating $3 million to education programs across Canada to continue to address the country's growing requirement for educated youth and science and technology skills.
Imperial's Building Futures program focuses funding on programs that will assist Canada in competing in today's technological world by reaching out to students of all ages to develop an interest in further education.
As part of this program, Imperial has invested $3 million at McGill University, York University, Junior Achievement Canada, YMCA Calgary, Let's Talk Science and the Canadian Petroleum Interpretive Centre of Alberta. As well, the company works to build capacity in the Aboriginal community with a scholarship program designed to encourage and assist students to pursue undergraduate post-secondary studies in disciplines relevant to the petroleum industry.
A recent study by the Organization for Economic Co-operation and Development (OECD) suggests Canada should take steps to increase the proportion of students who choose to study science and technology. In Canada, science and engineering degrees make up about 20 per cent of all new degrees.
"The skills of our workforce are Canada's most strategic asset," said Tim Hearn, chairman, president and chief executive officer of Imperial Oil Limited. "Investing in a high quality education system for our young people is one of the most important investments we can make for the future of our country."
"Imperial Oil has a long history of supporting education and community initiatives," said Monica Samper, president, Imperial Oil Foundation. "But now more than ever, we feel very strongly about doing our part to build the minds of tomorrow, not just for our industry, but for the country as a whole."
Over the past five years, Imperial Oil has invested more than $15 million in education-related initiatives across Canada. The company has been a proud part of Canada for 126 years, contributing to communities from coast to coast since the company's inception in 1880. One of the largest producers of crude oil and natural gas liquids and a major producer of natural gas, Imperial Oil is also Canada's largest refiner and marketer of petroleum products, sold primarily under the Esso and Mobil brands, and a major producer of petrochemicals.
Imperial Oil Aboriginal Scholarships Program provides four individual education awards each year to any person of Aboriginal ancestry entering post-secondary studies. The awards cover tuition, fees, text books and supplies and also contribute to living expenses during the course of the academic year. Over 90 students have benefited from this program to date.