Canadian Oil & Gas Weekly Update Nov 12 2017

November 13th, 2017 by

Major /Interesting Projects

  • Keyera An expansion to Keyera Energy’s plant in Alberta’s Industrial Heartland was approved for three readings by Strathcona County council.
  • Keyera today announced plans to construct the North Wapiti Pipeline System (the “Pipeline System”), providing critical infrastructure and services to producers developing the Montney north of the Wapiti River.
  • CNRL 2 new compressor projects 05-17-071-01W5 & 03-25-084-17W5
  • Encana working with Stantec adding new compressor existing battery 04-07-073-08W6
  • New Star Energy Ltd working with Millenia Resource Consulting 5 new batteries
  • K+S Potash 24 New Well License Swift Current
  • Obsidian Energy Pad: 8-25-47-10W5 X 4

First Facility License since Aug 1 2017

  • Rockeast Energy Corp._New Licence_Oil satellite – single or multiwell_AB_14-24-041-02W4
  • Sitka Exploration Ltd._New Licence_Gas battery – multiwell _AB_04-23-039-05W5

First Well License since Aug 1 2017

  • Huron Resources Corp_AB_GRANDE PRAIRIE_12-20-073-25W5
  • Baccalieu Energy Inc_AB_RED DEER_04-17-043-07W5
  • Fire Sky Energy Inc_SK_Estevan_13-08-004-08W2
  • K+S Potash Canada General Partnership_SK_Swift Current_06-36-019-25W2
  • Capio Exploration Ltd_SK_Swift Current_12-19-013-19W3

First Wells Drilled Since Aug 1 2017

  • Birchill Exploration _AB_DRAYTON VALLEY_02-18-043-13W5_Horizon _5
  • Birchill Exploration _AB_DRAYTON VALLEY_16-20-043-13W5_Horizon _19
  • Paramount Resources Ltd._AB_GRANDE PRAIRIE_01-02-066-05W6_Fox _3
  • Cardinal Energy Ltd_AB_GRANDE PRAIRIE_05-20-071-10W6_Nabors_31
  • ANEGADA OIL CORP._AB_GRANDE PRAIRIE_13-24-075-09W6_Star Valley _202
  • Sphere Energy Corp_SK_Kindersley_16-25-036-28W3_Horizon _18
  • Saturn Minerals Inc_SK_Kindersley_01-06-030-26W3_Precision _157
  • Serafina Energy Ltd_SK_Lloydminster_04-24-046-18W3_AKITA_30
  • Prairie Storm Energy Corp._AB_RED DEER_13-20-040-05W5_Precision _190
  • Paramount Resources Ltd._AB_ST. ALBERT_06-22-062-20W5_Precision _570
  • Twin Butte_AB_WAINWRIGHT_08-30-047-06W4_Bonanza _4
  • UNIT 18 CORP._AB_WAINWRIGHT_05-18-045-05W4_Bonanza _3
  • Broadview Energy Ltd_AB_WAINWRIGHT_05-33-044-05W4_Precision _145

 Rigs First Time Drilling Since Apr 1 2017

  • Fox 3_Paramount Resources Ltd._AB_GRANDE PRAIRIE_01-02-066-05W6
  • Precision 570_Paramount Resources Ltd._AB_ST. ALBERT_06-22-062-20W5
  • D & B Drilling _Vesta Energy Ltd_AB_RED DEER_14-01-039-28W4

Facility Summary 

Facility Chart Facility Map

New Well License Summary

Well License Chart 1 New Well Licese Chart 2 New Well Map

New Spud Wells

Spud Chart 1 spud chart 2 spud chart 3 Spud Map

Other News Nov 13 2017

  • Peyto plans to defer a larger portion of its 2018 capital investments until the latter part of #2018 Therefore, the Board of Directors of Peyto has approved a preliminary first half 2018 budget which includes a capital program of approximately $150 million that involves the drilling of 45 gross wells (average 97% working interest) along with associated pipeline investments For the second half of 2018, pending future Board approval and assuming the natural gas price forecast continues to improve, Peyto intends to embark on a larger capital program of approximately $300 million that involves the drilling of approximately 75 gross wells, associated pipelines and facility investment.


  • Tourmaline average 12-rig program is now planned for #2018. The Q3 capital included $25.0 million for the initiation of the Gundy deep-cut facility construction. The Company will expend an additional $5.0 million in Q4 2017, approximately $60.0 million in 2018 and $85.0 million in 2019 to complete the project.  Tourmaline expects to drill approximately 233 wells in 2018, down from approximately 300 wells in 2017 with a total 2018 EP capital program of $1.082 billion.


Bonterra will drill five (4.5 net) additional wells in November and December, which were originally scheduled for the first quarter of 2018 as part of the first quarter #2018 capital program. The Company expects its #2017 annual capital spending to be approximately $73 million.


  • BlackPearl Capital spending in #2018 is expected to be between $60 and $65 million. The focus at the beginning of 2018 will be on completing construction of phase 2 of the Onion Lake thermal project. For the remainder of 2018, we plan to resume drilling on some of our conventional heavy oil projects (approximately 20 wells), commence drilling a sustaining well pad for the Onion Lake thermal project and undertaking additional delineation drilling on our Blackrod lands.


  • Parsley’s preliminary #2018 capital program targets high-margin oil volume growth with top-tier capital efficiency on a steady development pace. The Company estimates that capital expenditures of $1.35-$1.55 billion would translate to oil production of 67.5-72.5 MBo per day.


  • Kelt has prepared its #2018 budget based on capital expenditures of $210.0 million and with management’s forecasted commodity prices the following results are projected: Kelt expects to drill 21 gross (19.5 net) wells in 2018, however the Company expects to complete 29 gross (27.5 net) wells in 2018 as there are expected to be 8 gross (8.0 net) drilled but un-completed (“DUC”) wells from 2017.


  • Spartan acquisition is strategic to Spartan as it gives us a 100% working interest in the Oungre unit and allows us to accelerate our waterflood project in the unit. The first phase of this project, which includes 8 horizontal producers, one new injector and 15 injector conversions, is scheduled for the fourth quarter of 2017 and first half of 2018.


  • Point Loma development plan filed by the Corporation to undertake pipelining and reconnection of multiple wells in the Thornbury area during the first quarter of 2018 has been approved by the AER. Capital investment of approximately $360,000


  • Raging River DUVERNAY our current base plan contemplates six evaluation wells in 2018, with two to three wells targeted for the first half of 2018. Current commodity strip pricing should allow a capital program in #2018 of $300 – $350 million while maintaining net debt to funds flow from operations at 0.8 to 1.0 times.


  • Pengrowth anticipates a #2018 capital program of between $50 and $60 million which is expected to support an annual production rate of 22,500 to 24,500 boe per day


  • ARC Resources Ltd. announced its #2018 capital spending program plans to spend a total of $690 million next year, most of which will be spent developing its Montney assets in Northeast B.C. Of the $690 million announced by ARC Resources in next year’s capital budget, a total of $565 million will be spent on developing the Sunrise, Dawson, Parkland, Tower, and Attachie regions in Northeast B.C.


  • Petrus’ Board of Directors approved a $10 million increase to the Company’s capital budget for #2017 to a range of $60 to $70 million, from the $50 to $60 million previously approved. The budget increase is expected to be funded through availability under the Company’s existing credit facilities(1).


  • Obsidian #2018 capital investment of $135 million includes $86 million associated with development and existing wellbore optimization, $25 million of infrastructure and corporate capital, $10 million of decommissioning expenditures and $14 million of capital associated with meeting the AER Directive 84 requirements for Hydrocarbon Emission Controls and Gas Conservation in the Peace River area.


  • Tamarack at Veteran, decided to accelerate work on its second Veteran oil battery expansion project into 2017 which will result in 25,000 bbls/d of emulsion capacity and water handling. Q1/18 drilling program with spending of $65-75 million in the quarter.


  • Keyera announced plans to construct the North Wapiti Pipeline includes a 12-inch sour gas gathering pipeline, an 8-inch condensate and water pipeline, and a compressor station. Pipeline System is currently estimated to cost approximately $120 million #2018, Keyera expects to invest between $700 million and $800 million primarily based on growth projects currently underway, including the acquisition of the South Grand Rapids diluent pipeline.


  • Delphi will continue its drilling program through to spring breakup in 2018 utilizing its current two rigs under contract, resulting in the drilling of up to five wells and the completion and tie-in of five to six wells in the first half of 2018.


  • Birchcliff anticipates spending in the range of $250 million to $450 million during #2018, expect that our 2018 capital expenditure plans will continue to focus on our Pouce Coupe and Gordondale assets, including the completion of the Phase VI expansion of our Pouce Coupe Gas Plant Perpetual total capital spending program of $39 million for #2018


  • Granite Management expects to achieve similar capital efficiency improvements in #2018, with a capital program totaling approximately $12 million, representing a 26% drop year over year, with 85% of the budget targeted towards drilling and completions.


  • Questerre Energy anticipates incremental investment at Kakwa in 2017 could be up to $7 million.


  • Keyera An expansion to Keyera Energy’s plant in Alberta’s Industrial Heartland was approved for three readings by Strathcona County council. County administration presented to council during the Oct. 31 meeting to seek approvals for first, second and third reading on a bylaw proposing to rezone approximately 20.4 acres of medium industrial (Heartland) zoning to allow for the consideration of future heavy industrial development.

Topics: 2018 Enerlead homepage Well & Spud License Report