• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 10 mins EU has already lost the Trump vs. EU Trade War
  • 8 hours Impeachment S**te
  • 2 days Science: Only correct if it fits the popular narrative
  • 15 hours 55.00 WTI
  • 2 hours More dumbed down? re Hong Kong Act of Congress
  • 2 hours Article: Did Exxon only make $39 Million onshore U.S. last quarter ?
  • 2 days IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
  • 2 days Crazy Stories From Round The World
  • 45 mins U.S. Shale To Break Records Despite Bearish Rhetoric
  • 22 hours Everything You Need To Know About Trump
  • 14 hours Visualizing Pennsylvania Oil & Gas Production (Through September 2019)
  • 3 mins Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 17 hours Water, Trump, and Israel’s National Security
  • 2 days ‘If it saves a life’: Power cut to 1.5 million Californians
  • 2 days Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
The World’s Most Vulnerable Oil

The World’s Most Vulnerable Oil

The modern geopolitical landscape is…

These Drillers Are Set To Get Never-Ending Rights In Canada’s Northwest

Canol Shale

ConocoPhillips, Husky Energy, Shell and MGM Energy are set to get exclusive, lifetime drilling rights to an area 2,485 square miles in size in the Canol shale area, located just south of Normal Wells in Canada, situated in the country’s Northwest Territory.

Earlier in September, a panel commissioned by the territory’s regulator, the Office of the Regulator of Oil and Gas Operation (OROGO), confirmed that a ConocoPhillips well drilled in 2014 had found a “significant discovery" of hydrocarbons. ConocoPhillips can now acquire a discovery license that would permit it to explore the area in perpetuity. Wally Schumann, the minister of Industry, Tourism and Investment would be the official to issue the license.

That same panel determined that due to the immense size of the deposit, other companies with exploration licenses that are located near ConocoPhillips could also apply for “significant discovery” licenses. Usually in exploration cases, companies must wait until they receive their own significant discovery licenses.

ORGO Executive Director James Fulford said that the panel calculated the size of the discovery area based on data provided by the companies.

Doug Matthews, energy analyst and former director of the oil and gas division for the Northwest Territory, called the panel’s move hasty. According to Matthews, the decision puts the Canol shale oil play in the hands of four companies at a very early stage of development. Matthews stated “A significant portion of the Central Mackenzie Valley is, for all intents and purposes, closed.”

Matthews also expressed concern that once the four companies acquire their exclusive licenses, the land may sit idle. In March of last year, ConocoPhillips said that it was not planning any work for its parcel. “Although a significant discovery declaration and subsequent significant discovery license is a positive indication for a play, it does not indicate commercial viability," said a spokesperson for ConocoPhillips at the time.

Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play