Benefits of Keeping Norman Wells as a Producing Asset
Northern Tier Growth Opportunities
We are trying to apply the “Principle of Mutual Benefit”by putting together a deal that will benefit all stakeholders. I’ll try to briefly summarize the benefits for each party:
IOL – No further responsibility for Norman Wells: (a) Oil production facilities, (b) wholesale fuels business, (c) power generation and distribution, (d) property taxes, (e) Reduces management, accounting and regulation of a small asset, (f) ability to offload abandonment liabilities incurred post-sale (2026) onto the new operator. For example, the removal of “tails” in the river adjacent to the islands, would become a maintenance project for BNP, to be dredged and removed over the course of development.
Sadhu Dene and Metis – Subject to GOC approval, the 5% royalty would be transferred directly to the First Nations. First Nation partners would be paid the royalty income directly, not through the GOC. We will work with the First Nations to ensure clean water, and preservation of the fish and wildlife. Projects and maintenance will be developed with joint discussion and participation. Use of First Nations staff on projects will be encouraged at the planning, engineering and construction phases.
Government of Canada (GOC) – A decision has been made to close the facility. If rather than closing down an asset, the life of the asset can be extended for 15 years, the GOC will continue to generate personal and corporate tax revenue. This would be offset by the loss of the royalty income, and the lost share of oil production revenue, which is scheduled to end in late 2026 anyway. Local fuel sales would continue to generate tax revenue (Aviation, gasoline and diesel). New industries will be developed and serviced from Norman Wells (gold mining).
Government of Northwest Territories – Maintain use of, and value of the runway / airspace. Extend local business activity for 15 years, as new industries are developed (servicing the future gold mining industry, gas pipelines). A long term goal for Norman Wells residents is an all season highway, to connect with Fort Simpson, NT. Our plans are to work towards development of Norman Wells as the “Hub of the Far North”, in a similar manner as Edmonton. Our focus will be to start servicing the gold mining industry such as the Astro Gold Project (Evrim & Newmont-Goldcorp), located near Mile 222 of the Canol Heritage Trail. Initially we will look at fuels, camp and power generation services. Longer term we will focus on providing a natural gas pipeline to the gold mine, where power will be generated locally. We will also work with the developers to staff and service the mine from the Norman Wells area. The local Mile 222 Airstrip can be used to shuttle workers to Norman Wells, where flights can be arranged throughout Canada. This is a long term 10-20 year plan. Planning for the roads will take place as the mine resources are developed and we will work with local governments towards planning and building the all season road from Fort Simpson to Norman Wells, and from Norman Wells to Mile 222 on the Canol Trail, which is the approximate location of the future Northwest Territories based mine. This will create a new logistics supply route to enable the mine to be serviced more cost effectively from the Northwest Territories. Improving the mine economics will lead to a longer term and prosperous industry.
Town of Norman Wells – The Town of Norman Wells would continue to be an active municipality for the next 15 years, rather than closing down. Maintains value of local homes, rental property and services such as the Esso gas station. Work with the community towards developing Norman Wells as the “Hub of the Far North”, as discussed above. Lease out the current housing stock owned by IOL and unoccupied to support affordable housing.
Staff at Norman Wells – Extending the life of the facility for 15 years. Continued employment at the site. Grow and diversify from oil and gas production towards gold mining, and gas transmission pipelines.
Contractors at Norman Wells – Stabilize economic activity for the next 15 years. Develop new clients in the gold mining industry.
Wholesale Fuel Business at Norman Wells – Grow fuel sales to service the new mines. Increase aviation fuel sales.
BNP Resources – Implement an EOR project locally in Norman Wells, NT. Expand into the wholesale fuels business in Norman Wells and grow fuel sales towards the Yukon border (gold mines). Plan a natural gas pipeline to the new mines (future), which will provide long term lower cost power than using diesel. As mines develop, work with local governments to build an all season road.
Manufacturing and New Industry Development Programs
Enhanced Oil Recovery - Norman Wells Pilot Plant
We will be using "Flue Gas Injection" for the enhanced oil recovery program. The portable unit will allow injection of "flue gasses" into the water injection wellbore for testing. This will be developed with the assistance of New Paradigm Engineering in Edmonton.
Micro Refining Unit for Norman Wells
We will be working with New Paradigm Engineering in Edmonton to develop a micro refining unit for Norman Wells, with a nameplate capacity of 1,000 - 2,000 barrels per day. This will produce mainly diesel and fuel oil, which will reduce imports into the region.
Natural Gas Growth Opportunities
As mines develop near Norman Wells, opportunities will exist for power generation using natural gas at the mine sites.
Gold Mining Opportunities
The Canol Heritage Trail near the NWT and Yukon border offers exceptional opportunities for future gold mines near Norman Wells infrastructure.
Micro LNG Development
We will be working with New Paradigm Engineering in Edmonton to develop a micro LNG facility for Norman Wells.. This will convert dry gas into LNG for use throughout the Yukon and Northwest Territories.
Company Business Development Plans for 2026
1. Working towards saving the Norman Wells oil field from closure.
2. BNP has proposed an enhanced oil recovery project estimated to recover an additional 40 MM barrels of oil, over 15 years at a cost of $12.50 per barrel. Total capital cost of project is estimated at $500 MM.
3. Work towards making Norman Wells the "Hub of the Far North" through servicing the new gold mining industry near mile 222 of the Canol Trail.
4. Work with the GOC to transfer the 5% GOR oil royalty to the local First Nations.
5. Develop local curling and hockey talent in Norman Wells though tournaments and sponsorship.
6. Through growth in mine services, we will work towards promoting an all weather road from Fort Simpson to Norman Wells, and onward to mile 222 of the Canol Trail and the Yukon Border (The MacKenzie Gold Trend).
Shareholder Events
Canada Day July 1, 2026