Alberta’s First Nation and Metis aboriginal groups are signaling a more active participation in Canada’s energy exploration and development, after signing an agreement Tuesday with Lakota Drilling to transfer the ownership and eventually the full operatorship of three heavy-duty drilling rigs. Collectively, the aboriginal groups will eventually invest a total of C$13.5 million toward the overall purchase cost of the rigs, and EnCana Corp. has made a minimum four-year drilling commitment at competitive rates to ensure that the rigs are fully engaged.

In a separate agreement with Saddle Lake First Nation, EnCana also contracted that group’s Lakota Drilling rig for work on E&P sites in Alberta and northeast British Columbia. Calgary-based EnCana, one of the largest independents in North America and the top driller in Canada, participated in the ceremony with representatives of the Dene Tha’ First Nation, the Metis Nation of Alberta Association (MNAA) and Lakota Drilling.

The drilling agreement is the second such commitment with aboriginal groups in Canada, and the first involving more than one rig, EnCana said. The precedent-setting agreement one year ago was between Precision Drilling, four First Nations from northeast Alberta, and EnCana’s predecessor, Alberta Energy Co. Ltd.

The Dene Tha’ First Nation, part of the Treaty 8 region in northwest Alberta and northeast British Columbia, has acquired two 3,000-meter TSM 7000 telescopic double rigs with 800-hp mud pumps. The MNAA, which has representation throughout Alberta, is also working with another rig of the same model.

Ownership of all four rigs, currently held by Lakota Drilling, will transfer to the First Nation and Metis groups under terms of the agreements, ranging from 50% to 100% ownership, and the rigs will be managed by Lakota Drilling. The commercial or work value of the transactions will total more than C$30 million. The rig deals are designed to increase jobs, training and business expertise among groups of aboriginal peoples, and each rig will provide employment for approximately 25 workers, complemented by additional spin-off business opportunities associated with serving the rig.

“EnCana fully recognizes the tremendous source of manpower potential that is available, to our company and the industry generally, through First Nation and Metis communities,” said Randy Eresman, president of EnCana’s Onshore North American Division. “We were pleased to pioneer the concept in Alberta last year, and we are now very proud to be associated with the opportunities afforded to Dene Tha’ and Saddle Lake First Nations and to the Metis Nation of Alberta. This is consistent with the principle of capacity building that serves as the foundation of our community investment programs and guidelines.”

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