|Thursday, August 17, 2000
Anderson Exploration Ltd. participated in the acquisition of six of the ten Exploration Licenses offered in the Mackenzie Delta and shallow water Beaufort Sea Area at a sale conducted by the Department of Indian Affairs and Northern Development on August 14, 2000. With PetroCanada acting as operator, Anderson Exploration acquired a 40% interest in two parcels in the Mackenzie Delta totaling 369,000 acres (148,000 net) for a gross work expenditure bid of $128.3 million ($51.3 million net). In the shallow water Beaufort Sea, the Company acquired a 100% interest in four Exploration Licenses totaling 837,000 acres for a total work expenditure bid of $224.1 million. Regulations require a 25% work deposit against the work expenditure bids which is recovered as expenditures are made. The work expenditures are made over a five year period with the obligation to drill at least one well on each License. This activity extends the term of the Exploration Licenses for another four years. In total, about C$466 million in bids was received by the department for nine separate parcels, representing about 1.9 million acres (760,000 hectares) of property. The sale was one of the largest on record, representing almost all the remaining available land in the region. Other buyers included Shell Canada Ltd which acquired one land block for C$35 million. The consortium of BP Canada Energy Co. , Burlington Resources Inc. and Chevron Canada Resources teamed up to spend C$76.6 million on another parcel. Anadarko Canada Corp. acquired a single parcel for C$2.4 million.