Presentation on theme: "Ministry of Energy & Mines Bowser and Sustut Basins."— Presentation transcript:
Ministry of Energy & Mines Bowser and Sustut Basins
Ministry of Energy & Mines Bowser and Sustut Basins Part of BC Ministry of Energy and Mines strategy to evaluate Intermontane basins of BC Petroleum Geology Section of the New Ventures Branch is entrusted with hydrocarbon assessment of sedimentary basins in BC Work cooperatively with Geological Survey of Canada
Ministry of Energy & Mines Old Ideas Terrace Smithers Dease Lk Alice Arm Takla Ldg Prior to 2002, Bowser Basin rocks were believed to be mature to overmature This was based on limited surface thermal maturation data in Klappan-Groundhog coal fields This data was extrapolated across the entire basin GSC 1995, 8.3 TCF and 2.5 BBO All oil potential in Sustut and Skeena rocks Effective basement - Triassic
Ministry of Energy & Mines New Realities New surface thermal maturation data indicates that large portions of the Bowser and Sustut basins are in the oil and/or gas windows Oil staining on surface and downhole samples indicates several petroleum systems Supported by possible missed gas pay in one well??? New lithofacies mapping and stratigraphic framework
Ministry of Energy & Mines New Realities New structural history and interpreted triangle zone Work progressing on basinwide understanding of petroleum geology Upcoming resource reassessment for the Bowser and Nechako basins Industry partnerships assessing the hydrocarbon potential of the Intermontane basins Flexible government
Ministry of Energy & Mines Current Activity GSC/MEM Partnership 4 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 publication FN/Community meetings and dialogue Active MEM promotion
Ministry of Energy & Mines Stewart – Omineca Road Improved all- weather access Partnership in development - FN, Industry, MEM
Ministry of Energy & Mines P&NG Tenure Current Options Exploration by Permit, Licence or Lease Competitive bid process May not be reflective of frontier risk
Ministry of Energy & Mines Where are we Heading?
Ministry of Energy & Mines Frontier P&NG The Future - New way of doing business?? Frontier royalty structure analysis New tenure system?? FN involvement??
Ministry of Energy & Mines Partnerships? Potential to explore via partnership MEM is willing to take a lead in organization What will work for industry? Your ideas – Call for proposals
Ministry of Energy & Mines Royalties Ability to adjust royalties to match the resource Examples – *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 Tenure Competitive bid – *no optic of subsidies *fair *ensures maximum benefit to BC New class of permit for frontier areas? – *Requires legislative change *Ability to recognize frontier risks Order 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 sessions Interested FN stakeholders New 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 Ferri 3 rd week of August, 2003 Start from Smithers 3 days in the field 3 nights Bell II Lodge $4000/person Contact Fil Ferri, 250-952-0377
Ministry of Energy & Mines MEM - Contacts Fil Ferri, 952-0377 Sr. Geologist Interior Basins, NVB Barry Ryan, 952-0418 Dr. Coal/CBM, NVB Mark Hayes, 952-0364 Manager, Petroleum Geology NVB Steve Roberts, 952-0115 Acting Assistant Deputy Minister
Ministry of Energy & Mines New References Ministry of Energy and Mines, Petroleum Geology Open File 2002-1 Vitrinite 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 2002-3 Petroleum Exploration Potential of the Nechako Basin, British Columbia; Prepared by Petrel Robertson Consulting Ltd. Ministry of Energy and Mines, Petroleum Geology Open File 2003-1 Rock-Eval/TOC Results from 11 northern British Columbia boreholes; by K.G. Osadetz, L.R. Snowdon and M. Obermajer Ministry of Energy and Mines, Paper 2003-1 Early to Middle Jurassic Sedimentation, Deformation and a Preliminary Assessment of Hydrocarbon Potential in the Central Whitehorse Trough and Northern Cache Creek Terrane by J.M. English, M.G. Mihalynuk, S.T. Johnston, M.J. Orchard,M. Fowler and L.J. Leonard Ministry of Energy and Mines, Paper 2003-1 Indications for Effective Petroleum Systems in Bowser and Sustut Basins, North-Central British Columbia K.G. Osadetz, C.A. Evenchick, F. Ferri, L.D. Stasiuk and N.S F. Wilson.
Ministry of Energy & Mines InformationInformation Presentation will be available on CD Please leave your business card in the basket and we will mail you a copy
Ministry of Energy & Mines Thank you for coming!