Inuvialuit Petroleum Corporation

IPC was created in 1985 with the objective of becoming a profitable, medium-sized, diversified, and integrated petroleum company. It has grown steadily since inception. In 1999, IPC sold its subsidiary, Inuvialuit Energy Inc. Funds from this sale form a significant portfolio of marketable securities which is currently managed by IIC.

Since the sale of its southern business interests, IPC has invested the proceeds through IIC until appropriate hydrocarbon related opportunities arise in the ISR. The significant profits reported by IPC for 2004 were largely due to income earned in Gyrfalcon Holdings Ltd. and related to oil and gas concessions granted by ILC.

Ikhil/Inuvik Gas Project

The Ikhil/Inuvik Gas Project is a wellhead to burner-tip operation created to supply Inuvik with natural gas from two wells at the Ikhil reservoir, located approximately 50 kilometres northwest of Inuvik on Inuvialuit lands. The project provides Inuvik residents and businesses with a secure supply of natural gas for power and heating at lower cost than fuel shipped from Edmonton. The project was initiated in 1997 by IPC after successfully testing well K-35. In 1998, J-35, a successful development well was drilled.

K-35 and J-35 were completed in early 1999. Production modules were installed at the Ikhil site in early 1999. Construction of a pipeline to connect the wells to Inuvik and of a polyethylene distribution system were completed later that year.

The project is owned equally by IPC (through its subsidiary Ikhil Resources Ltd.), AltaGas Services Inc., and Enbridge Inc. Total project cost was approximately $44 million, of which IPC contributed approximately $14 million.