CALGARY, ALBERTA (January 12, 2005) - The Government of Canada today announced $1.76 million in federal funding to assist the Samson Cree Nation in taking a historic first step into the oil and gas drilling business through the acquisition of a 50 per cent interest in two oil and gas drilling rigs. The announcement was made by the Honourable Anne McLellan, Deputy Prime Minister, Minister of Public Safety and Emergency Preparedness and Member of Parliament for Edmonton Centre and the Honourable Andy Scott, Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians. Samson Cree Nation and Western Lakota Energy Services Inc. are launching a historic joint venture that will bring jobs, training and expanded business expertise to the Samson Cree Nation. Samson will benefit financially through a 50/50 partnership affiliation with Western Lakota in this $13.9 million project. EnCana Corporation and High Point Resources have contracted with the partnership to guarantee 195 drilling days for the rigs over the next two years and then on a best-efforts basis thereafter. These rigs will be used in northern Alberta and northeast British Columbia. In addition, Apache Canada has provided a letter of intent to use the rigs on a best-efforts basis. "It is gratifying to see private industry like Western Lakota Energy Services, EnCana Corporation and High Point Resources willing to partner in economic development projects with First Nations." said Minister McLellan. "This is truly a win-win scenario not only for the parties involved, but for all Canadians." "There is strong public support for government investment to help First Nations become self-reliant," said Minister Scott. "Canadians, like First Nations, want to see improvements in the lives of First Nations' people and believe increased and sustained economic development is key to leading to greater First Nations' autonomy." In addition to the direct benefits to the community derived from the purchase of these two rigs, it is also anticipated that many other businesses will be created indirectly through this venture, including businesses that specialize in site preparation, seismic and surveying activities, back hoe operations, water and fuel hauling, equipment rental and servicing, work camp and catering operations and other businesses directly related to serving the oil patch. By the end of the first five years of operation, this project is expected to create a total of 20 direct and 77 indirect jobs for Samson community members. The training received by members will provide transferable job skills in the drilling industry beyond this present partnership. - 30 - For further information, contact: Glenn Luff Director, Communications Indian and Northern Affairs Canada Alberta Region (780) 495-6638 (780) 940-9880 (Cell)
