Chevron Canada Makes Gas Discovery at Mackenzie Delta

Chevron Canada Resources announced on behalf of the Mackenzie Delta partners that the North Langley K-30 well in the Mackenzie Delta has encountered commercial quantities of natural gas.

The discovery is jointly owned by Chevron Canada Resources, BP Canada Energy Company and Burlington Resources Canada Ltd., the members of the Mackenzie Delta Partnership. Akita Equtak Drilling Ltd., a joint venture of Akita Drilling Ltd. and the Inuvialuit Development Corp., drilled the well. Chevron Canada Resources is operating the well.

The well is located on Exploration License 394, 81 miles northwest of Inuvik, and seven miles from Niglintgak field, one of the anchor fields for the proposed Mackenzie Valley Pipeline Project.

"This discovery has encountered exactly what we had projected we would find," said Alex Archila, President of Chevron Canada Resources. "It reaffirms our confidence in the exploration potential and commercial viability of the region."

Archila said the discovery will not change existing overall strategy for exploration in the region. "We will proceed with the regulatory process to permit additional exploratory well locations in the region as possible candidates for next year's drilling season," he said.

"We are very encouraged by these results," said John Pritchett, Vice President Exploration, BP Canada. "This discovery is a positive step and we look forward to seeing the results of our future exploration activities in the area."

Mark Ellis, President of Burlington Resources Canada Ltd. commented: "These results represent solid progress in advancing our position in this highly prospective area. We look forward to working with our partners to evaluate further opportunities in the Mackenzie Delta."

The well was tested at a restricted flow rate of 18 MMCFD from the Tertiary interval. It represents the first Tertiary discovery from the recently-awarded 1999 and 2000 exploration lease sales.


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