James C. Burns¹
(1) Slade Energy Inc, Calgary, AB

Abstract: Ikhil – A case study of the first commercial natural gas production in the Canadian arctic

The Ikhil natural gas field is located on the eastern margin of the MacKenzie River delta in the Canadian western arctic at approximately 68° N, 134° W. The field was originally discovered by the drilling of the Gulf et al Ilhil K-35 well in 1986. The well tested approximately 3.7 mmcfd from a Tertiary (Eocene) sandstone at a depth of 1225m (3,690’). The Inuvialuit Petroleum Corp. acquired the rights to the discovery in 1996.

The reservoir is an extensive delta-front sand sequence overlain by an interbedded sand, shale and coal sequence deposited as the delta prograded northwestward into the Beaufort Sea. The trap is formed by up-dip truncation of the sand by a northeast-southwest trending listric down to basin fault of the Eskimo Lakes fault zone and is bounded to the northeast by a minor cross-cutting fault. The reservoir dips down to the basin to the northwest and west. Interbedded coal seams are the likely source of the gas as it is over 99% methane.

A 3-D seismic survey and two wells were completed in 1998. The gas is transported from the two producing wells to the Town of Inuvik through a buried pipeline, completed in 1999, where it is used for power generation, heating and other local energy needs. This project is noteworthy as the first commercial natural gas project in the Canadian arctic, the first buried natural gas pipeline in continuous permafrost in Canada and the fact it was, conceived, developed and completed by an independent aboriginal owned corporation.

AAPG Search and Discovery Article #90914©2000 AAPG Annual Convention, New Orleans, Louisiana