Frontier

Kicking off the next phase of the Sable Island project, Exxon Mobil Corp. said last week that natural gas production has begun at the Alma field, the first Tier 2 production from the Sable project, located 125 miles offshore Nova Scotia.

Deliveries are scheduled to start in May from Canada’s newestgas production frontier in the Northwest Territories after a groupled by Chevron Canada Resources Ltd. achieved a breakthrough inlining up approvals from a host of federal, territorial, native andenvironmental agencies.

Petro-Canada of Calgary completed the largest land acquisitionprogram in its history as part of its focus on Canadian frontiergas and Grand Banks oil production. The company participated inthree land sales and a major farm-in to acquire new explorationacreage in the Mackenzie Delta, located in the NorthwestTerritories; the Flemish Pass Basin, located on the East Coastoffshore Newfoundland; and on the Scotian Shelf, located offshoreNova Scotia. The program adds 2.7 million acres (1.5 million netacres) to Petro-Canada’s land position.

There will be no free rides on Canada’s newest gas supplyfrontier, after Nova Scotia’s Liberal government established aroyalty regime that it admits puts it on the expensive side ofoffshore development areas by international standards.

The battle over the next gas distribution frontier is continuingin Maine with the Maine Public Utilities Commission (MPUC) grantingBangor Gas Co. unconditional authority to provide gas distributionservice to five municipalities in the greater Bangor area. BangorGas, a joint venture of Bangor Hydro and Energy Pacific, iscompeting for market share in the area with CMP Natural Gas, ajoint venture of Central Maine Power and New York State Electric& Gas. Both projects are intended to provide new gas serviceonce Maritimes and Northeast comes on line in November 1999.