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International Frontier Resources Corp V.IFR

Alternate Symbol(s):  IFRTF

International Frontier Resources Corporation is a Canadian company, which is focused on advancing oil and gas projects. Through its Mexican subsidiary, Petro Frontera S.A.P.I de CV (Frontera) and strategic joint ventures, it is advancing the development of petroleum and natural gas assets in Mexico. It also has projects in Canada and the United States, including the Northwest Territories, and Montana.


TSXV:IFR - Post by User

Post by glaciermanon Apr 28, 2014 10:41pm
236 Views
Post# 22500734

Players keep focus on Canol shale potential

Players keep focus on Canol shale potential
As another drilling season winds down for explorers in Canada’s latest emerging shale oil play, activity in the Canol shale oil formation of the Central Mackenzie Valley continues to remain a top priority for players.

The Northwest Territories’ government estimates the Canol formation to contain between 2 billion and 3 billion barrels of recoverable oil, and the play has attracted attention from majors such as Husky Energy, Imperial Oil and ConocoPhillips.

Considered by some industry insiders to have the potential to rival other shale plays across North America, such as the Horn River shale gas basin in northern British Columbia and the Bakken light oil formation spanning Saskatchewan and US state North Dakota, the Canol is the Northwest Territories’ biggest onshore area.

According to Aboriginal Affairs & Northern Development Canada (AANDC), there are 15 active exploration licences totalling nearly 1.3 million hectares issued in the Central Mackenzie region, representing C$641 million (US$585 million) in work commitments.



Remote The Canol is an extension of both the Horn River and Duvernay shale plays in British Columbia and Alberta. It is the source rock for the Norman Wells oil pool, which is operated by Imperial and has been producing since the 1920s.

Husky’s plan is to drill two wells in the winter of 2015 and, if successful, another two in the winter of 2016. Meanwhile, its focus has been on building an all-access 19-kilometre road to its Canol asset in the remote Central Mackenzie Valley, as well as an ice road over the Mackenzie River.

The road is essential for the company to access its area on a year-round basis and to carry out testing on the wells in eight-month durations, says Husky’s Canol project manager Ken Hansen.

Making a work commitment of C$376 million in exchange for two parcels in 2011, Husky has shot 220 square kilometres of 3D seismic, and drilled and completed two vertical wells. It has spent C$160 million in the Canol to date.

In November, ConocoPhillips was the first company to be granted federal regulatory approval to fracture exploration wells in the Northwest Territories. Its exploration programme for 2013/2014 included drilling, completing and flow testing two horizontal wells on exploration licence 470 near Norman Wells.

The first well was drilled in December and finished in January. The first well completions began in mid-February. The second well was due to be completed by this month, according to ConocoPhillips.

The company’s plan is to start a five-year, 10-well appraisal programme between 2015 and 2019. If successful, a pilot testing stage will follow between 2019 and 2024.

Canadian junior MGM Energy drilled, cored and logged its East McKay I-78 well in the Canol in early 2013. It drilled a vertical well to the depth of 2000 metres, hitting both the Canol and Bluefish zones of the region.

Although the Canol is prolific, explorers face significant challenges, such as remoteness and distance from their markets, lack of infrastructure and inclement weather.

“That’s the essence of frontier exploration. We’re Canadians — geography and climate has never scared us. That’s the charm of the north — it’s a frontier jurisdiction with a lot of potential,” says Aaron Miller, manager of the northern file for the Canadian Association of Petroleum Producers.

“If companies get engaged in a process where they can explore and really assess the viability of the flow of hydrocarbons — it’s a high-risk play and there’s a lot of potential — that’s when infrastructure can start to come into the equation and the conversation.”

A federal call for bids for seven parcels of land north of the Canol in the Central Mackenzie Valley closed in mid-September. It is unknown when the federal government will announce the winners.

 

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