Corporate Update
Pimee Energy (the “Company”) has completed its process of consultation with Stakeholders in its’ Godin oil project.
As mentioned in our last update of December 2, 2024, we were nearing the completion of Stakeholder Consultations with the stakeholders in our interest areas which is a requirement by the Alberta Government regulatory bodies. By “stakeholders”, we were referring to various Alberta Government regulatory agencies such as Alberta Environment, Alberta Energy Regulator, Alberta Forestry, four Indigenous groups (two First Nations and two Metis) in the area to address impact on their “Traditional Lands”, as required by Federal and Alberta regulations. Traditional lands refer to lands over which Indigenous people have, by way of ancestral and contemporary connections to a geographical area. Also included in the stakeholders are other operators who have operations in the area, any surface rights owners proximal to the Pimee acreage and owners of infrastructure which the Company may need to have access to.
We had not anticipated delays from the stakeholders, however we were delayed by one of the First Nations groups. This group had tried to have us pay a substantial “up front engagement fee” as well as guarantee them a large annual payment for a period of five years for “administrative cost”. All of these would have been substantial in the amounts being asked for. Further, under the “Indian Act” dealing with traditional lands, there was no legal obligation for payments of the kinds and amounts being asked for by the First Nations Group. We (Pimee) rejected the proposed agreement and we engaged an independent third party to negotiate our terms with the First Nations group. As a result we ended up saving our Company in excess of $2,500,000. This did result in delaying the consultation process about 6 weeks longer than planned.
This delay pushed our timing to go into the field from end of January to mid-March. We had been experiencing very cold weather (-25 C) from the middle of January to the middle of February, then we got a sharp increase in the temperatures since the middle of February (+10 to + 15 C) which has resulted in an early spring thaw. This has resulted in early road bans being put on all our highways plus the all-weather road we have contracted to use with Alberta Forestry, the owners of the all-weather road. In our contract with Alberta Forestry, Pimee is held to specific load limits and for re-imbursement for any damage to the road that may be caused from our activities. As a result we will be delayed until after “break up”, which we hope is finished by the end of May.
On behalf of the Pimee Energy team,
PIMEE ENERGY INC.
Michael Kamis, P.Eng.
President and CEO
