Nisga’a to undertake oil and gas studies
Curlew Lake enters joint venture with Métis Moccasin Resources
Lagasco to acquire exploration, development rights from two First Nations
Imperial “surprised and disappointed” over pipeline hearings extension
Yekooche First Nation and Enbridge Gateway Pipelines sign agreement
Vast’s Boyer Project exceeds expectations
Nisga’a to undertake oil and gas studies
By Rudy Kelly
Offshore oil and gas exploration research continues to move ahead on British Columbia’s north coast but the face of it is changing as Aboriginal groups like the Nisga’a will be the taking the lead rather than just being observers.
(Above) Gingolx Dock
In following up on a protocol agreement signed with the Nisga’a Lisims government in January, 2005, the provincial government gave the Nisga’a $283,000 this past June to hold its own consultations and research on the issue. Nisga’a Lisims President Nelson Leeson said it is an agreement that is long overdue.
“Aboriginal people have always been on the outside looking in, waiting for other people, for government, to do their reports,” said Leeson. “We’ve always been in reaction mode, to someone else’s results – we don’t want to be that way anymore.”
(Above) Nisga’a Lisims President
Nelson Leeson
Under the terms of the contribution agreement, the money will be used for a number of things, including organizing a workshop on offshore oil and gas for Nisga’a Lisims government executive, officers and senior employees, as well as to conduct workshops in the four Nisga’a Nation communities and for Nisga’a locals in Vancouver, Terrace and Prince Rupert.
There will also be a fact-finding trip to Cook Inlet, Alaska, to look at developments there, and a survey to obtain views of members of the Nisga’a Nation will be conducted. Finally, a workshop will be held to provide recommendations for further activities.
The protocol agreement signed in 2005 committed the Province and the Nisga’a to work together to provide information to Nisga’a Nation communities on the potential environmental, economic, social and cultural benefits, risks or opportunities arising from the exploration and development of offshore oil and gas.
B.C. Energy, Mines and Petroleum Resources Minister, Richard Neufeld, said the province was pleased to support the Nisga’a initiative and welcomed their involvement in learning more about the offshore oil and gas industry.
“Offshore oil and gas is one of many potential economic opportunities for the province,” said Neufeld. “And First Nations communities should share in the benefits.”
Leeson concurred with Neufeld, adding that the agreement was just a natural progression of the landmark Nisga’a treaty in 1998.
“We negotiated a treaty that says we must be consulted and accommodated. Now that sounds familiar because everybody has been saying it recently,” said Leeson, emphasizing the point that “if a development impacts our people, we need to be able to do our own studies, especially if it involves the environment.”
Aboriginal people have always been “environmentally aware,” said Leeson because of how they have traditionally lived off the resources and, in this case, sea life. The sea and its occupants are deeply embedded in Aboriginal culture too, especially coastal societies like the Nisga’a.
But Leeson was quick to state that people, on either side of the issue, should not make any assumptions on how the Nisga’a will go about this work.
“Getting this money doesn’t mean we are in the pockets of the province or favor offshore exploration,” said Leeson. “But we are open-minded because we need to build an economic base here too, with things the way they are, in fishing and forestry, and would be for development if it could be done in a safe way.”
Leeson expects the work to be completed in 8-10 months and said the Nisga’a plan to share the results of their consultations and studies with all interested parties.
In the meantime, the Coastal First Nations, which includes the Tsimshian and Haida, commissioned a report by Simon Fraser University on the impact of the Enbridge Gateway Pipeline Project in Kitimat that would see oil tanker traffic on the north coast. The results, released in June, concluded that there was a certainty of a number of oil spills within a 10-year span.
Curlew Lake enters joint venture with
Métis Moccasin Resources
Curlew Lake Resources Inc. (CWQ-TSX-V) 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.
We 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, Albert. 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 4 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 2 deep gas wells in the Turner Valley area of Alberta , and expects income from 2 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 6 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 Company. 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 5 years.
For additional information please visit http://www.curlew-lake.com/ cwq/mail.html.
Lagasco to acquire exploration, development rights from two First Nations
Lagasco Corp. (TSXV:LCO) said July 7th it plans to acquire oil and gas exploration and development rights from the Woodland Cree First Nation and Swan River First Nation, both in northwestern Alberta.
Lagasco Corp. is a junior oil and gas company currently producing gas from its Windy Lake joint venture project in northern Alberta.
The company said it has a letter of intent to acquire the rights underlying two contiguous blocks of 16,200 hectares of the Woodland Cree First Nation and an additional 4,000 hectares of the Swan River First Nation.
The Woodland and Swan River lands are about 400 kilometres and 290 km northwest of Edmonton, respectively.
Both are considered oil and gas prospects and the Woodland property could also contain bitumen, the tarlike substance extracted from Alberta's oilsands, Lagasco said.
Lagasco will also enter into formal agreements with Black Horn Resources Ltd. of Calgary and its two subsidiaries to acquire BHR' 100 per cent working interest in existing farmout agreements with the Woodland and Swan River bands.
Lagasco said it will pay $1.85 million to Indian Oil and Gas Canada, on behalf of BHR, for permits to explore and develop the Woodland and Swan River reserve lands.
The company will also pay and issue to Black Horn about $4.1 million in a combination of cash and common shares.
Closing is expected by Sept. 30, subject to certain conditions including but not limited to due diligence and to the approval of the TSX Venture Exchange.
Lagasco shares last traded at 59 cents on July 6th.
Imperial “surprised and disappointed” over pipeline hearings extension
The main company behind a proposed $7-billion natural gas pipeline down the Mackenzie Valley says it's ``surprised and disappointed'' that regulatory hearings will take months longer than initially agreed to.
``We see this five-month extension as something that will have definite negative impacts on our project schedule and costs and potential startup times,'' Hart Searle, spokesman for Imperial Oil (TSX:IMO), said July 20th.
On July 19th, a panel reviewing the pipeline's potential environmental and social impacts announced it will sit until April 12 instead of wrapping up in December.
The extra time was scheduled after the panel asked presenters in March how much more time they would need.
But Searle pointed out that under a 2002 agreement that was supposed to outline how the hearings would work, the panel was not only supposed to finish the hearings, but also deliver its report within 10 months.
Under the new schedule, the panel won't start writing until after the hearings are finished, meaning the report is now not expected until August 2007.
Imperial was neither consulted on the new schedule nor warned it was coming, Searle said.
``There's no question we are both surprised and disappointed by the announcement. It's a project that faces many challenges already. This, in a sense, compounds the situation.''
The joint review panel is one of two examining the project. A National Energy Board panel is examining technical and economic considerations.
The pipeline, which would open up the vast gas reserves of the Mackenzie Valley, Mackenzie Delta and Beaufort Sea to development, is also considered crucial to the economic development of the Western Arctic.
However, environmentalists and some Aboriginals fear a pipeline would damage the area's fragile ecosystem before governments set up a promised network of protected areas.
Since beginning in Inuvik on Feb. 14, the panel has held 42 days of hearings in 18 communities and received more than 300 presentations from over 275 individuals and groups.
Under the new schedule, the panel will hold hearings in a further eight communities, bringing the total number visited by the end of its review to 26.
Yekooche First Nation and Enbridge Gateway Pipelines sign agreement
The Yekooche First Nation announced July 11th the signing of a Memorandum of Understanding with Enbridge Gateway Pipelines.
"In preparation for our final agreement in treaty negotiations it's important for our community to build relationships and partnerships with industry,” said Chief Allan Joseph, Yekooche First Nation. “Protecting the environment and traditional land use is a high priority and, for our young people, education, training and job opportunities are also essential for the future. By participating actively in the process our input will be heard and we, as a Nation, will be better informed."
Enbridge Gateway Pipelines provided capacity funding for the Yekooche First Nation to enable them to participate in the project, in particular environmental assessment, traditional land use, traditional knowledge, archaeological and socioeconomic data collection.
“The memorandum also provides a framework for helping to identify potential opportunities for Yekooche involvement in the construction and operation of our proposed pipelines, including employment and training opportunities and contracts for goods and services,” said Art Meyer, President, Enbridge Gateway Pipelines Inc. “It allows both groups to better understand each others needs.”
"We are very pleased to be provided with the skills inventory of the Yekooche people,” said Meyer. “This information is tremendously helpful for us in identifying training priorities and matching human resources to opportunities with the project and future operations."
The Yekooche First Nation traditional territory is located about 85 km northwest of Fort St. James, British Columbia. The territory is composed of four reserves covering approximately 180 hectares.
Vast’s Boyer Project exceeds expectations
Vast Exploration Inc. announces that initial production rates on the first six wells in its drilling program have surpassed forecast economics. These wells, on the Paddle Prairie Metis Settlement in Boyer, Alberta, were completed and stimulated last week. Each well was put on an initial twenty-four hour flow test to recover stimulation fluids. The wells tested at an average rate of 158 mcf/d, surpassing initial expectations. The maximum test rate reached 266 mcf/d. Tubing will be run in the well bores so that a stabilized rate for each well can be determined. Without the tubing, well capacity to lift produced load fluid is limited.
Additionally, Vast has signed a formal agreement with EnCana to process the gas at its Paddle Prairie South Gas Facility. Terms call for capital contribution and operating cost charges of under $.90/mcf to transport and treat the gas and compress it into the Nova sales system. The facility has the capacity to handle the third party gas immediately upon tie-in to the EnCana gathering system. First gas production is anticipated by mid-August.
Pipeline construction will begin by the end of June. Construction will be done by an experienced pipeline contractor that was selected following a rigorous bid process and will utilize local contractors wherever possible.
The ten well drilling program is now completed. The capital costs to drill and case the wells have come in under budget. A total of ten wells were drilled and cased, six of which have been flow tested. Later this week, the remaining four wells will be logged, completed and stimulated. Originally, Vast had planned to drill 12 wells. Two of these wells have been deferred until the winter program because of inclement weather.
Vast Exploration Inc. is an Alberta-based exploration and production company focused on the above joint venture with the Paddle Prairie Metis in Boyer, Alberta; an exploration land play in Barrhead, Alberta; and a Coal Bed Methane (CBM) farm-out in the Black Warrior Basin in Alabama. Vast produces 25 boe/d and has 30,000 acres of undeveloped land in Western Canada. The Company trades on the TSX Venture exchange under the symbol "VST". Further information on Vast can be found at www.vastexploration.com.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".