Corporate Overview
The Company was formed to explore for hydrocarbons in the Central Mackenzie Valley ("CMV") Northwest Territories, Canada. The CMV is an under-explored basin with an average of one well per 400 square kilometers versus one well per two square kilometers in the Western Canadian Sedimentary Basin. In phase one of the exploration program the Company farmed out the cost to acquire 2D seismic and to drill two exploration wells. The first two wells were dry holes but they provided valuable new geological information. With this information a basin model study was completed, the results of which indicated hydrocarbons may have been generated south of the initial two wells. After acquiring new seismic two exploratory wildcat wells were drilled, one of which resulted in the Summit Creek B-44 discovery well. The B-44 well was production tested in two Devonian age Reservoirs, the well flowed at rates of 20 million cubic feet per day and 6,300 barrels of light oil per day. In 2008 a second discovery, Stewart Lake, was made 40 kilometers south of the Summit B-44 discovery. The Stewart well tested 5 million cubic feet per day (un-stimulated) from Cretaceous age sandstones.
As of December 31, 2009 the Company has participated in nine exploration wells, three gravity surveys and five seismic surveys. The cost to acquire this data was approximately $175 million (gross), $28.3 million net to IFR. This proprietary data has allowed the consortium to high-grade prospective acreage as well as relinquishing acreage deemed to be non-prospective. Interpretation of the seismic data has identified two drill ready locations and three prospects that require additional seismic to mature to drill ready.
Business Strategy
The principal business of the Corporation is to acquire, develop, exploit and produce oil and natural gas in the Central Mackenzie Valley, Northwest Territories ("CMV"). The Corporation is considered to be a development stage enterprise, as it has yet to generate revenue from its properties in the CMV. The exploration and development of the Corporations CMV properties are dependent on the ability of the Corporation to obtain financing or joint venture partners to assist in financing the Corporations exploration programs.
To date, energy infrastructure, specifically in the form of pipelines to transport natural gas, has not yet reached the CMV. A pipeline to transport oil and other liquid hydrocarbons does exist from Northern Alberta to Norman Wells in the CMV. The Corporation believes that should it make a commercial oil or liquids discovery that it can negotiate transportation in the Norman Wells Enbridge oil pipeline to deliver production to Northern Alberta.
The Corporation believes that the current lack of gas transportation from the CMV provides it with an opportunity to acquire interests in land that would not be available to it on reasonable terms, if a natural gas pipeline existed. The Corporation's business plan is to acquire oil and natural gas prospective acreage at a lower cost today than would be possible if a gas pipeline existed.
The Corporation plans to review new ventures that if successful will provide cash flow earlier than potential cash flow may be obtained from production in the CMV.
HomeCompanyProjectsInvestorsNewsContact
