RDC’s 24th Annual Conference Presentations
Tom Homza, Alaska Manager, EnCana Oil and Gas (USA) Inc.
Thank You
And sincere thanks to the Resource Development Council for providing inviting EnCana Corporation the opportunity to update the Business Leaders and stakeholders of Alaska about who we are and what our Alaskan activities are. Since we’re not conducting major operations in Alaska this winter, I will keep this n this brief presentation very brief, hoping to I hope to accomplish 2 very simple things:
First, to re-introduce you to EnCana Corporation with an emphasis on our international exploration portfolio.
Second, to describe our Alaskan activities
EnCana Corporation is a leading independent oil and gas exploration and production company. Our roots are in North America, where we have demonstrated a deep technical expertise, and a wide range of exploration opportunities. We have strong values, respect the rights of all people and believe in respecting and protecting the environment. . EnCana is committed to sustainable development and environmental responsibility. We are committed to working with landowners, residents, communities and other stakeholders to build and maintain long-term, mutually beneficial relationships.
EnCana’s overall international program focuses on high potential projects where risk-adjusted returns can compete with our North American opportunities.
SLIDE 2 – map International New Ventures Exploration
Our Alaskan focus is on exploration and Alaska is one of our international exploration geologic provinces. The 3 large yellow stars on the map indicate our 3 core exploratory areas, each pinned with a recent discovery.
These discoveries are in the UK North Sea: Buzzard, In the Gulf of Mexico: Tahiti and Sturgis, and in Atlantic Canada: Deep Panuke.
As a result, these core areas received the lion’s share of the exploration capital in 2003. That is, these areas (Atlantic Canada, the UK, and the Gulf of Mexico) received 70% of the funding in 2003 and will get even more next year. – PAUSE-
The 2004 International New Ventures exploration activity reflects a more focused international effort around a fewer number of larger, drillable international prospects, consistent with the company’s long term goals. This focus on drilling activity is evident in the 2004 capital spending program. This means we are faced with a decrease in our overall exploratory capital budget. I point this out, not to discourage anyone, but rather to underscore the fact that although EnCana is a new player in Alaska and we do see opportunity here – our Alaskan business MUST compete internally for fewer dollars.
SLIDE 3 – Current Alaskan Land
So far, Alaska CAN and DOES compete within EnCana. This map shows our land position in Alaska, which is currently limited to the North Slope Basin. The reason Alaska is able to compete with our other internal projects is partially the result of efforts of many people in this room. We would particularly like to thank the Agencies – the DNR and other state agencies, the BLM, and the MMS for enabling access to quality lands at reasonable terms.
SLIDE 4 – SDC Cut-away
Last year our McCovey project took us into the Beaufort Sea where we had the opportunity to work hand in hand with Bowhead Whaling Captains. We coordinated our efforts with North Slope communities and designed a drilling program entirely around the schedule of the Bowhead and fully ceased operations during their migration. The Whalers did well and we completed our operations without incident. For that operational success we have our partners (ConocoPhillips and ChevronTexaco), the many many contractors and of course the North Slope people to thank.
SLIDE 5 – Land
We recently acquired these offshore lands at the September OCS Sale and there is no way we would’d have been able to afford to explore on so much acreage if not for the various incentives conceived by John Goll and his local team and sanctioned by the National MMS Leadership. In the Beaufort we will continue to honor our responsibility to the Native Communities who have subsisted there for eons. We will take what we learned at McCovey and use it elsewhere in the Beaufort. - PAUSE -
WWe continue to pursue opportunities on all of our lands. Many of these have been enhanced by the facilities operators who have farmed out acreage and shared technical expertise. For that we are grateful and we’re confident that we can reach other mutually beneficial arrangements in the future
SLIDE 6 - CLOSE
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In closing, EnCana is optimistic about the resource potential that remains in Alaska. That is why we are here investing. Investing in lands, exploratory wells, and in the community. There are many challenges in Alaska that need to be overcome for our business to succeed here and benefit Alaska. Many of these, such as permitting processes, access to data, facilities and stable fiscal terms will require continued assistance and guidance from people outside our company. So, we look forward to furthering our relationships with all stakeholders toward mutual success. Thank you very much for the opportunity to share our optimism and for your attention.
