Chancellor to drill on Blood land

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Chancellor Energy Resources has landed an exploration permit which will allow it to drill on 55,000 acres of Blood Reserve land.

Chancellor will pay the band a lump sum for exploration rights and royalties equal to those paid on Alberta Crown-owned lands.

Tom MacKay, Chancellor president, said the deal is "a coup," since the reserve lands are unexplored and the permit is for 10 years.

Chancellor plans to drill two wells in search of natural gas and conduct seismic tests. If they are successful, another four wells could be drilled by year's end.

The Blood band's leadership struggle has no effect on the deal. All that is needed to approve a document is a majority of council members, said Ken Jobin, Director of Funding Services for the Department of Indian Affairs.

The Blood Council has been trying to oust Chief Harley Frank since shortly after he took office last November. Ignoring a Federal Court injunction that upheld Frank's right to hold office until at least Nov. 2, council staged a byelection June 30 to replace him. Former Chief Ray Fox won.