NORTHERN CROSS YUKON LIMITED LNG Charette

Transcription

1 NORTHERN CROSS NORTHERN CROSS YUKON LIMITED LNG Charette Developing Yukon Energy For Yukoners Eagle Plain Natural Gas January 2012

2 NORTHERN CROSS Northern Cross in Yukon Northern Cross (Yukon) Limited ( Northern Cross ) was formed in Yukon in 1994 The companyis focused onthe exploration and development ofoil oil and gas resources in Eagle Plain Eagle Plain sedimentary basin was explored in the 1960 s and 1970 s This effort produced a significant amount of valuable geological and geophysical information Northern Cross operates 3 significant discovery licenses, 2 natural gas and 1 oil and gas January 19, 2012 Developing Yukon Energy For 2 Yukoners

3 Developing Yukon Energy For Yukoners Yukon Conventional Resource Potential 3 Northern Cross (Yukon) Limited

4 NORTHERN CROSS New Exploration Concepts Eagle Plain has the largest oil and gas potential of any onshore Yukon basin NorthernCrosshas has used newgeological andgeophysical information and modern exploration concepts to get a better understanding of the basin The company expects commence drilling operations in Summer 2012 to follow up earlier discoveries and evaluate new opportunities The Geologic Survey of Canada median estimate of conventional natural gas resource potential is 6000 Bcf By comparison supplying 200MW of new natural gas power generation for 20 years would require about 400 Bcf January 19, 2012 Developing Yukon Energy For 4 Yukoners

5 Developing Yukon Energy For Yukoners Northern Cross at Eagle Plain NCY operates all the oil and gas land dispositions in Eagle Plain 3 Significant Discovery Licenses (SDL s) (SDL s) Contingent discovered resource estimate: Bcf gas Extensive Geological & Geophysical data base Northern Cross (Yukon) Limited

6 Developing Yukon Energy For Yukoners Northern Cross Short Term Plans Conduct an 18 month drilling program to further assess the resource potential Remaining work commitments under existing exploration permits are about $20 million A 5 well program to extend initial permit term of permits and explore broad basin potential has been approved by the Oil and Gas branch The cost of this program would far exceed the work commitment China National Offshore Oil Corporation (CNOOC) has made a significant equity investment in Northern Cross providing capital and support to conduct the program A camp is currently being built adjacent to the Dempster Highway to support field operations Drilling is expected to commence in Summer Northern Cross (Yukon) Limited

7 Service Work on Chance Well

8 Developing Yukon Energy For Yukoners Northern Cross Longer Term Plans Extensive analysis of drilling results Do further work directed by those results Follow up work may include: Additional exploration Development Drilling Production to Yukon and possibly export markets Production decision depends on cost of development and market size 8 Northern Cross (Yukon) Limited

9 NORTHERN CROSS Developing Yukon Fuel Supply Most fuel is currently brought in to Yukon by truck from outside the Territory Importing this fuel into Yukon is a significant drain on the economy and creates little value added locally Developing a Yukon source of fuel benefits the economy, but also reduces emissions and contributes to energy security and self sufficiency Development of a fuel supply from Eagle Plain can provide jobs and opportunity in Yukon as well as pay taxes and royalties locally This new industry can create opportunity for businesses and entrepreneurs who can add value in supply, operations and distribution Northern Cross is committed to providing opportunities to Yukoners, including all Yukon First Nations 9

10 NORTHERN CROSS Power and Energy for Yukon Eagle Plain LNG Could Provide: Fuel for Power Generation Fuel for homes and businesses Fuel for industries Fuel for transportation 10

11 Developing Yukon Energy For Yukoners Eagle Plain Development Timelines Northern Cross is committed to a broad based resource assessment under the terms of its exploration permits The resource assessment is an exploration program aimed at better understanding the resource potential Northern Cross may be able to supply gas in the shorter term by doing appraisal work on existing discoveries as well as evaluating new discoveries for production capacity In order to move forward with work directed a supplying gas for LNG Northern Cross needs to know how much gas is required and when We would have to do development planning to establish timelines and thresholds for economic development Northern Cross is very interested in supplying gas for LNG projects such as the one proposed by the First Nations LNG group, Dempster Energy Services 11 Northern Cross (Yukon) Limited

12 NORTHERN CROSS LNG January 19, Developing Yukon Energy For Yukoners