Northeastern British Columbia


Northeastern Review


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

Energy & Mines

February 2018

BC Land Sales

Alberta Land Sales

Rig Release Meterage Tally

Well Permitting

BC Land Sales

By Richard Macedo

After a strong start in January, BC land sale revenue was more tempered in February, drawing $2.12 million into provincial coffers.

Industry picked up 4,484 hectares at an average of $471.89. After two sales, the province has collected $14.95 million on 43,489 hectares at an average price of $343.69.

That’s well off last year’s pace, when after the first two months of 2017, BC had collected $43.31 million on 15,941 hectares at an average price of $2,717.04. This was due to a large sale in January 2017, with a parcel sold for $35.13 million.

JuneWarren-Nickle's Energy Group

Alberta Land Sales

By Stephen Marsters

Alberta’s February land sale brought $12.26 million into provincial coffers.

Industry picked up 66,706 hectares at an average price of $183.85.

Year-to-date, the province has collected $40.83 million on 154,690 hectares at an average price of $263.93.

JuneWarren-Nickle's Energy Group

Rig Release Meterage Tally

By Stephen Marsters

Operators across Canada drilled 836 wells last month, excluding experimental holes, up a modest three per cent from 813 wells rig released in January 2017 — with the overall meterage tally increasing by a greater percentage rate.

On a metres-drilled basis, operators rig released 2.34 million metres of hole in January (excluding experimental wells), up almost nine per cent from 2.16 million metres in the prior-year period.

Alberta, Saskatchewan and Manitoba all saw an increase in meterage, while British Columbia reported a decline.

Provincial results, excluding experimental wells

In Alberta, 428 wells were rig released last month compared to 418 a year ago (an increase of two per cent). Drillers finished 1.34 million metres of hole, an increase of six per cent from 1.26 million metres in January 2017.

Operators in the province rig released a total 291 wells in January that had either oil (212) or bitumen (79) as an objective, compared to 268 last year (218 oil wells; 50 bitumen wells). Producers in Alberta drilled 104 wells with gas as an objective, down from 125 wells a year ago.

Saskatchewan’s rig releases rose six per cent to 319 in January 2018 from 301 a year ago. Producers drilled 695,988 metres in the first month of 2018, up 17 per cent from 593,765 metres a year ago. DOB records show 289 of the wells drilled during January had oil as an objective, up from 269 a year ago.

Operators working in B.C. drilled 51 wells last month, down nine per cent from 56 a year ago. Producers rig released 226,968 metres compared to 234,349 metres a year ago (a decrease of about three per cent).

Meanwhile, Manitoba recorded 36 rig releases, even with a year ago, with 71,631 metres drilled versus 60,739 metres a year ago (up 18 per cent).

Of those wells with a final status, the majority — 83.33 per cent — were oil wells. Gas wells comprised 7.14 per cent of wells with a final status.

Rig release counts, including experimental wells

Operators drilled 971 wells during January 2018, including experimental wells, a three per cent decrease compared to 1,002 wells rig released in the year-prior period.

In Alberta, there were 563 wells rig released in January 2018 compared to 605 a year ago (down seven per cent).

JuneWarren-Nickle's Energy Group

Well Permitting

By Stephen Marsters

Operators across Canada licensed 931 wells in January, down almost six per cent from 986 a year ago, with permitting counts level down in Alberta, up in BC and Manitoba, and down in Saskatchewan.

Alberta authorized 447 wells during the month, down about three per cent from 459 recorded last year.

In British Columbia, the province approved 117 new licenses last month, up from 29 a year ago, while in Saskatchewan the regulator authorized 342 permits, down about 29 per cent from 479 a year ago.

Manitoba’s license count lifted to 24 permits from 17 permits in January 2017.

A total of 604 oil and bitumen wells were licensed across Western Canada last month compared to 702 in January 2017 — with the decline mostly due to the reduction in oil permitting in Saskatchewan.

Meanwhile, across the western provinces, 193 gas wells were licensed in January, up from 123 in the year-prior period.

Producers licensed 766 horizontal wells in January, down from 801 last year.

Operators licensed 32 oilsands evaluation wells last month, up from 17 last year, 37 in January 2016 and 64 in January 2015.

The top five licensees of new wells in January, including experimental and oilsands evaluation holes, were: Canadian Natural Resources Limited (104), Crescent Point Energy Corp. (81), Tourmaline Oil Corp. (48), Spartan Energy Corp. (38) and Teine Energy Ltd. (37).

A year ago, Crescent Point licensed 123 wells in January, while Canadian Natural licensed 37 in January 2017.

JuneWarren-Nickle's Energy Group