Canada Lags in Arctic Development

    CALGARY, May 12 /CNW/ - Canada is being left behind in efforts to find,
develop and produce hydrocarbons from the Arctic says an Alberta-based expert.
Dave Russum, Vice President of Geoscience with AJM Petroleum Consultants, will
focus on Canada's Arctic opportunities during a technical talk he will present
as part of the 2008 C3GEO Convention tomorrow in Calgary.
    "About 30 years ago, Canada was a pioneer in the Arctic, but we have
spent the past thirty years mired in a debate over the Mackenzie Valley
Pipeline," explains Mr. Russum. "Estimates suggest that there might be
10 billion barrels of oil and 181 trillion cubic feet of gas in the Canadian
Arctic, and with our high rates of natural gas production depleting reserves
of conventional natural gas across Canada, we need to be considering all
opportunities."
    According to international law, no country currently owns the rights to
the North Pole. The five surrounding Arctic states (Russia, the United States,
Canada, Norway and Denmark) are limited to a 200 nautical mile (370km)
economic zone around their coasts. However, as part of ratifying the
United Nations Convention on the Law of the Sea in 2003, Canada was awarded
ten years in which to stake a claim extending our 200 nautical mile zone.
While Canada has the opportunity to expand our claim to Arctic sectors, we
have historically lagged behind on the exploration and development fronts.
    "While exploring for petroleum in the Arctic is technically and
physically challenging, there are a number of geological basins that have
proven oil and gas - Norway, Russia and the USA all have producing projects
within the Arctic basins," said Mr. Russum. "As the changing environment
increases open water in the Arctic and the Northwest Passage becomes passable
during summer months, Canada needs to consider Liquefied Natural Gas (LNG) and
other imaginative transportation options to support our Arctic development."

    AJM Petroleum Consultants, a privately owned Calgary-based company, has
extensive experience in corporate reserve evaluations, acquisition and
divestiture evaluations, and evaluations of unconventional reserves such as
coalbed methane, tight gas, shale gas and bitumen/heavy oil. Diverse
engineering and geological capabilities combined with a forward thinking
approach to technology have allowed AJM to provide innovative solutions to
clients in the upstream sector of the oil and gas industry in Western Canada,
North America and internationally.

For further information: For media information, or to book interviews:
Andrea Conway, AJM Petroleum Consultants, Office: (403) 648-3269, Mobile:
(403) 200-6292