Ministry of

Energy & Mines

Bowser and Sustut BasinsBowser and

Sustut Basins

Ministry of

Energy & Mines

Bowser and Sustut Bowser and Sustut BasinsBasins

Part of BC Ministry of Energy and Part of BC Ministry of Energy and Mines strategy to evaluate Mines strategy to evaluate Intermontane basins of BCIntermontane basins of BC

Petroleum Geology Section of the Petroleum Geology Section of the New Ventures Branch is entrusted New Ventures Branch is entrusted with hydrocarbon assessment of with hydrocarbon assessment of sedimentary basins in BCsedimentary basins in BC

Work cooperatively with Geological Work cooperatively with Geological Survey of CanadaSurvey of Canada

Ministry of

Energy & Mines

Old IdeasOld IdeasOld IdeasOld Ideas

Terrace

Smithers

Dease Lk

Alice Arm Takla Ldg

Prior to 2002, Bowser Basin Prior to 2002, Bowser Basin rocks were believed to be rocks were believed to be mature to overmaturemature to overmatureThis was based on limited This was based on limited surface thermal maturation surface thermal maturation data in Klappan-Groundhog data in Klappan-Groundhog coal fieldscoal fieldsThis data was extrapolated This data was extrapolated across the entire basinacross the entire basinGSC 1995, 8.3 TCF and 2.5 GSC 1995, 8.3 TCF and 2.5 BBOBBOAll oil potential in Sustut All oil potential in Sustut and Skeena rocksand Skeena rocksEffective basement - Effective basement - TriassicTriassic

Ministry of

Energy & Mines

Where are we Now?

Where are we Now?

Ministry of

Energy & Mines

New RealitiesNew Realities

New surface thermal maturation data New surface thermal maturation data indicates that large portions of the indicates that large portions of the Bowser and Sustut basins are in the Bowser and Sustut basins are in the oil and/or gas windowsoil and/or gas windowsOil staining on surface and downhole Oil staining on surface and downhole samples indicates several petroleum samples indicates several petroleum systemssystemsSupported by possible missed gas pay Supported by possible missed gas pay in one well???in one well???New lithofacies mapping and New lithofacies mapping and stratigraphic frameworkstratigraphic framework

Ministry of

Energy & Mines

New RealitiesNew Realities

New structural history and New structural history and interpreted triangle zoneinterpreted triangle zoneWork progressing on basinwide Work progressing on basinwide understanding of petroleum geologyunderstanding of petroleum geologyUpcoming resource reassessment for Upcoming resource reassessment for the Bowser and Nechako basinsthe Bowser and Nechako basinsIndustry partnerships assessing the Industry partnerships assessing the hydrocarbon potential of the hydrocarbon potential of the Intermontane basinsIntermontane basinsFlexible governmentFlexible government

Ministry of

Energy & Mines

Current Activity

GSC/MEM Partnership4 year joint program examining the geology and hydrocarbon potential of the central and southern Bowser and Sustut basins. This will eventually lead to a basin analysis and atlas publicationFN/Community meetings and dialogueActive MEM promotion

Ministry of

Energy & Mines

Stewart – Omineca Road

Improved all-weather accessPartnership in development - FN, Industry, MEM

Ministry of

Energy & Mines

P&NG Tenure

Current OptionsExploration by Permit, Licence or LeaseCompetitive bid process May not be reflective of frontier risk

Ministry of

Energy & Mines

Where are we Heading?

Where are we Heading?

Ministry of

Energy & Mines

Frontier P&NG

The Future - New way of doing business??Frontier royalty structure analysisNew tenure system??FN involvement??

Ministry of

Energy & Mines

Partnerships?

Potential to explore via partnershipMEM is willing to take a lead in organizationWhat will work for industry?Your ideas – Call for proposals

Ministry of

Energy & Mines

Royalties

Ability to adjust royalties to match the resourceExamples – *CBM Royalty*Marginal *Deep gas MEM will be working on Frontier Royalty Structures*What works in other jurisdictions?*Recognize infrastructure & other unique costs* Ideas? - Net profit

Ministry of

Energy & Mines

P&NG TenureCompetitive bid – *no optic of subsidies*fair*ensures maximum benefit to BCNew class of permit for frontier areas? – *Requires legislative change*Ability to recognize frontier risksOrder In Council – creation of tenure?*Unique solution*Still may require many months*Must ensure fairness

Ministry of

Energy & Mines

First Nations

Initiating discussion and planning FN community information sessionsInterested FN stakeholdersNew opportunities for FN participation in oil and gas exploration and development activities

Ministry of

Energy & Mines

Industry Field Trip

Leaders Carol Evenchick, Kirk Osadetz, Fil Ferri3rd week of August, 2003Start from Smithers 3 days in the field3 nights Bell II Lodge$4000/personContact Fil Ferri, 250-952-0377

Ministry of

Energy & Mines

MEM - Contacts

Fil Ferri, 952-0377Sr. Geologist Interior Basins, NVB Barry Ryan, 952-0418Dr. Coal/CBM, NVBMark Hayes, 952-0364 Manager, Petroleum Geology NVBSteve Roberts, 952-0115Acting Assistant Deputy Minister

Ministry of

Energy & Mines

New ReferencesMinistry of Energy and Mines, Petroleum Geology Open File 2002-1Vitrinite and bitumen reflectance data and preliminary organic maturity model for the northern two thirds of the Bowser and Sustut basins, north-central British Columbia;by C.A. Evenchick, M.C. Hayes, K.A. Buddell and K.G. Osadetz.Ministry of Energy and Mines, Petroleum Geology Special Paper 2002-3Petroleum Exploration Potential of the Nechako Basin, British Columbia;Prepared by Petrel Robertson Consulting Ltd.Ministry of Energy and Mines, Petroleum Geology Open File 2003-1Rock-Eval/TOC Results from 11 northern British Columbia boreholes;by K.G. Osadetz, L.R. Snowdon and M. ObermajerMinistry of Energy and Mines, Paper 2003-1Early to Middle Jurassic Sedimentation, Deformation and a Preliminary Assessment of Hydrocarbon Potential in the Central Whitehorse Trough and Northern Cache Creek Terraneby J.M. English, M.G. Mihalynuk, S.T. Johnston, M.J. Orchard,M. Fowler and L.J. LeonardMinistry of Energy and Mines, Paper 2003-1Indications for Effective Petroleum Systems in Bowser and Sustut Basins, North-Central British ColumbiaK.G. Osadetz, C.A. Evenchick, F. Ferri, L.D. Stasiuk and N.S F. Wilson.

Ministry of

Energy & Mines

InformationInformation

Presentation will be available Presentation will be available on CDon CD

Please leave your business Please leave your business card in the basket and we will card in the basket and we will mail you a copymail you a copy

Ministry of

Energy & Mines

Thank you for coming!

Thank you for coming!