Bands form oil company

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A group of 21 Indian bands from western Canada have formed their own oil company, as of November 1986.

The 21 bands are shareholder in the Canadian Native Oil Corporation (CNOC ) and have each purchased $1,000 in shares. The bands come from various areas in Alberta, Saskatchewan British Columbia and the Northwest Territories.

At the November meeting, goals and objectives were passed by the shareholders and elections for board of directors took place.

A market study as to what direction the company will move in is expected to be completed in three or four months, and from that point the company will decide whether "we want to buy an existing oil company or whether we want to start by getting into exploration," said Clifford Freeman, president of CNOC.

"Right now we are looking at the best possibilities and getting the most out of our dollar," said Freeman. A prospectus will be issued by the company once a decision is made to attract non-voting investors or "B" shareholders from the general public.

Class A shares are available only to Indian bands for $1,000 each. Shares can be bought up to February 1987 and at this time the board will meet to decide whether the costs per share will increase or whether it will remain as it. If the company does not get off the ground for some reason, the Indian bands will be reimbursed for the $1,000, but until then the money is held in trust.

Class B shares will be available to the general public once the company moves ahead and decides exactly what avenues it will take. However, the control of the company will always be with the Indian bands.

The company is at present meeting with the Native Economic Development Program in the hopes of obtaining funding from them to pay for a study. "We've met also with the Department of Indian Affairs' regional director to see if they could match the dollars that the private industry put in already," said Freeman. "No answer from the DIA yet," said Freeman, "but they're offering us very much assistance."

As things stand, the Diversified Drilling oil company is footing the bills. Diversified Drilling is a privately owned company.

Freeman said that the money made by the oil company will be used by the Indian bands to invest for beneficial programs on their own reserves.

The company is not all Native-run right now, but Freeman hopes that eventually all management will be Native. "For now, to get all things going and to become competitive in the field, we have to use the experts in the business."

The company is still trying to get other bands to join because, Freeman feels, "we need a larger body. Although it's not necessary, we feel that it would be of benefit to have more bands own this particular company."