APTN National News
Gambler First Nation in Manitoba has known its sitting on oil for years but finding the right deal to get it to market wasn’t there.
That seems to have changed.
“We started the process about two years ago and the best deal we could get back at that time was 17 per cent royalty,” said Chief David LeDoux. “Nothing else, no shares, no jobs, anything.”
Now the community has signed an agreement with Elcano Exploration to get at the oil.
Elcano has the right to drill for oil, while Gambler gets 40 per cent ownership of working interests and 17 per cent royalty.
“A few months back, the chief had contacted us regarding a potential partnership to develop some of their mineral rights held out here,” Brad Gans, of Elcano Exploration Inc.
The band intends to use the extra revenue on housing and other costs.
“Housing has always been an issue with us. So I think using some of those dollars to do housing repairs that we can’t normally afford,” said Coun. Nathan Tanner.
It will also create jobs said Ledoux.
“We’re a little bit tight on money so this is going to be a big boost. We’re hoping to get into agriculture and green power. So it’s going to be a big game changer for us,” he said.
The life expectancy of the project is approximately 20 years and the first well is expected to be drilled by the fall.