more big news on blueberry decision interpretation...map below...

more big news on blueberry decision interpretation...

map below of land protected from surface development in purple and restricted in blueberry area

Petronas was planned to be a big supplier to LNG Canada, but has had a large part of their land protected with no surface development to be permitted

Petronas and others, including Tourmaline impacted by development restrictions, will be looking for more land and resource

>>with much of Petronas land impacted, it would stand to reason that it, and other members of the LNG Canada consortium, may look to acquire additional resources outside of the Blueberry territory

Our Take:

• There’s been 18 months of uncertainty regarding oil & gas development in BC – and that has had an impact on attracting new international investors given our conversations with these investors. Although there remains some uncertainty as it relates to individual companies still, the announcement today is a positive step forward in bringing this high level uncertainty to an end.
• This should especially benefit companies outside the Blueberry territory who were impacted by the inability to receive well licenses, but who will not be impacted by new disturbance plans. Specifically for mid-cap names, companies that should be able to proceed unabated include: Crew, Kelt, Vermilion, much of ARC’s land, and portions of Tourmaline’s land base. Lands more impacted to land disturbance reductions appear to be Petronas, CNRL, ConocoPhillips and Tourmaline’s northern BC Montney lands. We highlight a map in Exhibit 1.
• In addition, annual land disturbance will be restricted to 750 hectares (3 sections). Although there was no clarity on how power lines, road development and pipelines will impact the per hectare disturbance, this likely will be resolved with the $60,000/ha payment as noted above – impacting these larger producers more. Other disturbance noted was:
  • Areas in Purple (High Value Area A) is subject to 100% protection rate
  • Areas in Orange (High Value Area B) is subject to 80% protection rate
  • Areas in Green (High Value Area C) is subject to 60% protection rate
• Lastly, with much of Petronas land impacted, it would stand to reason that it, and other members of the LNG Canada consortium, may look to acquire additional resources outside of the Blueberry territory. Names with large gas in place would include ARC and Crew.