jobsearchonline

Northeastern British Columbia

INFORMATION    JOBS    CAREERS



Northeastern Review

 

Introduction    Careers & Job Skills     Construction    Energy & Mines    Rig List    Archives

Energy & Mines

December 2017

BC Land Sales

Alberta Land Sales

Wells Licensed To End Of November

Industry Drills Just Over 6,600 Wells

Oil, Natgas Revenue In Major Western Provinces


BC Land Sales

By Richard Macedo

It was a modest end to the 2017 BC land sale schedule, which was not indicative of the overall yearly performance for the natural gas producing province.

Bonus revenue rebounded strongly this year after a difficult two years, including a record low for revenue in 2016.

The December sale generated $882,835 in bonus bids on 5,665 hectares at an average price of $155.84.

For the year, the province earned $173.25 million on 79,238 hectares at an average price of $2,186.49. This was a rebound year for BC after a record low in 2016 of $15,190,019.

Rebound year

Two sales were largely responsible for the large jump in bonus bids year-over-year. The province started the year with a bang — the first land sale of 2017 in BC produced $39.62 million in bonus bids, driven by a $35.13-million license in northeast BC.

This upbeat start was in contrast to the brutal 2016, which set a new record yearly low for bonus bids of $15.19 million. For 2015, the province took in $18.19 million, which means BC surpassed in one sale what it took in for the previous two years combined.

Meanwhile, a large $77 million parcel highlighted BC’s July sale of petroleum and natural gas (P&NG) rights.

Industry acquired 17,009 hectares at that sale for $84.73 million at an average price of $4,981.28.

JuneWarren-Nickle's Energy Group

Alberta Land Sales

By Richard Macedo

Thanks to $28.62 million in the public offering of oilsands leases, the Alberta government took in a total of $44.62 million in bonus bids on December 6th.

The province sold 208,391 hectares at an average price of $214.12.

Year-to-date, the province has attracted $537.79 million in bonus bids on 1.41 million hectares at an average price of $381.30.

Adanac Sequestration Corp purchased three leases in the Athabasca oilsands area, paying $3.78 million ($867.98/ha), $5.25 million ($891.98/ha), and $2.67 million ($626.87/ha).

There was also interest shown in the Peace River oilsands area, with two parcels over $2 million and three over $1 million, although at a lower per hectare amount.

P&NG

On the petroleum and natural gas (P&NG) side, two parcels combined for $9.12 million.

Meridian Land Services (90) Ltd. picked up a parcel for $4.37 million at an average price of $6,834.16, while Antelope Land Services Ltd. acquired a parcel for $4.75 million at an average price of $6,186.74.

The Alberta government held its final land sale of the year on December 20, bringing in $18.6 million in bonus bids.

Industry picked up 73,639 hectares at the Dec. 20 sale at an average price of $252.61. The province ended the year with $556.39 million in bonus bids on 1.48 million hectares at an average price of $374.91.

Dec. 20 sale highlights

Highlights of the sale included Windfall Resources Ltd. picking up two parcels. It acquired a lease for $1.55 million at an average of $3,029.93. The broker also acquired the rights to a lease for $1.23 million at an average price of $2,393.93.

Landsolutions GP Inc. acquired a lease for $1.54 million at an average of $6,019.96.

Scott Land & Lease Ltd. picked up a parcel for $1.1 million, at an average price of $4,303.33.

Three licenses combined for $5.3 million in bonus bids, and all were acquired by Meridian Land Services (90) Ltd.

JuneWarren-Nickle's Energy Group

Wells Licensed To End Of November

By Stephen Marsters

A total of 8,867 wells have been licensed across Canada in the January-to-November period, up 62 per cent from 5,488 permits granted in the comparable period last year.

There were 1,110 wells authorized in November, up from 1,051 wells in November 2016.

There were 570 licenses approved in Alberta during November, down slightly from 590 licenses issued a year ago. Still, it was the province’s highest monthly count this year for well licenses.

Over the first 11 months of 2017, well permitting in Alberta has increased 49 per cent to 4,509 compared to 3,021 wells in January-November 2016.

In Saskatchewan, 388 wells were licensed last month, down from 416 a year ago. During January to November of 2017, a total of 3,287 wells have been licensed compared to 2,101 in the year-prior period (up 56 per cent).

British Columbia approved (input) 122 new licenses in November, up from 37 approved a year ago. To the end of November, BC has approved 840 new wells compared to 274 in the January-to-November period last year (up 207 per cent).

In Manitoba, 27 new wells were licensed compared to seven a year ago, while the 11-month tally has increased 161 per cent to 217 from 83 a year ago.

Operators licensed 106 oilsands evaluation wells in November, down from 215 permits issued in November 2016, but a monthly high for 2017. Over the first 11 months of the year, 201 oilsands evaluation wells have been licensed compared to 540 last year.

Producers in Western Canada licensed 682 wells to drill for oil or bitumen in November, up from 604 a year ago.

To the end of November, records show 5,728 permits were approved in Western Canada to drill for oil or bitumen, up 76 per cent from 3,246 licenses last year.

Gas permitting in the three western-most provinces over the first 11 months of 2017 totalled 1,551 wells, an increase of about 22 per cent from 1,270 permits last year.

Across Western Canada, producers licensed 162 gas wells in November compared to 168 a year ago.

This year’s 11-month total includes 7,102 horizontal wells (excluding experimental wells), or about 86 per cent of the total. Last year, to the end of November, operators had permitted 4,259 horizontal wells (again, excluding experimental wells), also about 86 per cent of the total.

Including experimental wells, Cenovus Energy Inc. led producers by licensing 120 wells in November.

Second-place finisher Crescent Point Energy Corp. permitted 106 wells, while Canadian Natural Resources Limited licensed 70 wells. Raging River Exploration Inc. had 58 licenses last month and Tamarack Valley Energy Ltd. permitted 43 wells last month.

At the 11-month mark, including experimental wells, Crescent Point has licensed 816 wells, followed by Canadian Natural (619), Cenovus (446), Teine Energy Ltd. (389) and Raging River (381).

JuneWarren-Nickle's Energy Group

Industry Drills Just Over 6,600 Wells

By Stephen Marsters

Industry rig released 6,602 wells in the first 11 months of 2017, excluding experimental wells, an 87 per cent increase from 3,540 wells drilled in the comparable period last year.

On a percentage basis, the largest year-over-year changes to the end of November have occurred in Alberta and Manitoba.

Operators across Canada drilled 17.74 million metres of hole to the end of November, up 85 per cent from 9.58 million metres that were rig released in the first 11 months of 2016.

Alberta producers rig released 3,412 wells to the end of November compared to 1,711 a year ago (up about 99 per cent). Total metres drilled in the province lifted 94 per cent to 10.15 million metres from 5.24 million metres a year ago.

Operators working in Manitoba drilled 223 wells over the first 11 months of 2017 compared to 71 in the year-prior period (an increase of 214 per cent), with 416,995 metres drilled compared to 127,827 metres rig released a year ago (up 226 per cent).

Saskatchewan’s rig release count improved 66 per cent to 2,387 wells compared to 1,437 rig releases in the same timeframe a year ago. Rig-release meterage in the province rose to 4.67 million metres from 2.90 million metres a year ago (up 61 per cent).

In BC, 565 wells were drilled to the end of November, up about 85 per cent from 306 wells drilled in the January-to-November period last year. Operators have drilled 2.43 million metres in the province over that timeframe compared to 1.25 million metres last year (an increase of about 94 per cent).

Across Canada, of those wells with a reporting status, 74.36 per cent of the wells with a status are listed as oil or bitumen wells — up from 65.82 per cent last year. Meanwhile, 21.34 per cent of the rig released wells to the end of November have gas as an objective, down from 24.74 per cent last year.

In Alberta, oil or bitumen is listed as the objective for 2,125 wells rig released over the first 11 months of the year compared to 916 wells last year (up 132 per cent). Wells targeting gas or CBM rose to 1,037 rig releases versus 628 a year ago (up 65 per cent).

Oil is listed as the objective of 2,103 wells drilled in Saskatchewan (compared to 1,370 in January-to-November 2016), while no wells have been rig released in the province with gas as an objective — either this year or last.

November rig release summary, excluding experimental wells

In November, producers across Canada drilled 597 wells, again excluding experiment wells, up about seven per cent from 559 rig releases a year ago.

Operators in Alberta drilled 337 wells last month, an increase of 36 per cent from 248 wells in November 2016, while Saskatchewan’s rig release tally declined 31 per cent to 183 wells compared to 266 a year ago.

British Columbia’s operators rig released 53 wells last month compared to 36 in November 2016 (up 47 per cent).

Producers drilled 21 wells in Manitoba last month, up from eight a year ago (an increase of 163 per cent).

Rig release counts, including experimental wells

Operators drilled 7,159 wells, including experimental wells, over the first 11 months of 2017, up 75 per cent from 4,086 rig releases in January-November 2016.

Last month, 602 wells were rig released compared to 567 in November 2016 (an increase of six per cent).

JuneWarren-Nickle's Energy Group

Oil, Natgas Revenue In Major Western Provinces

Oil and natural gas revenue in the three major producing provinces for 2017/2018 is expected to climb from the previous fiscal year, although projections are lower than originally budgeted estimates.

As of the second quarter update in Alberta, B.C. and Saskatchewan, the provinces are forecasting a combined $3.99 billion for the 2017/2018 fiscal year, which ends on March 31, 2018. That would be up from $3.44 billion collected in 2016/2017, but it’s lower than the $4.38 billion originally budgeted for 2017/2018.

The provinces released these figures in recent second quarter budgetary updates. These numbers do not include Crown land sale revenue.

Description: http://www.dailyoilbulletin.com/media/img/govtrevdec28.png

In Alberta for 2017-18, the total crude royalty forecast is up 48 per cent to $704 million, and the natural gas and byproduct royalty forecast is up 38 per cent to $626 million.

However, while estimates are up for most segments of non-renewable resource revenue in Alberta, the updated forecast for bitumen royalties now calls for $671 million less than originally budgeted — $1.875 billion for the 12 months ending March 31, 2018.

British Columbia’s natural gas royalty projection for 2017/2018 is down by $67 million as lower projections of natural gas prices and production volumes are partially offset by a lower estimate of the utilization of royalty program credits.

Oil and natural gas revenue of $619.1 million is now expected in Saskatchewan, lower than the $670.4 million at budget. The decline is primarily due to a lower West Texas Intermediate (WTI) oil price forecast and the higher exchange rate, partially offset by an increase in production and a lower light-heavy differential.

JuneWarren-Nickle's Energy Group