Canada shatters records in 2003 for new well permits

Gary Park

Petroleum News Calgary correspondent

Regulators across Canada issued a staggering 27,454 permits last year to drill oil, natural gas, bitumen and other wells, easily toppling the previous high of 21,967 in 2000.

The breakdown included 18,244 development holes and 6,360 exploration permits, both new records, while many of the 2,739 evaluation and observation wells were directed at new oil sands and bitumen projects.

Alberta passed the 20,000 mark for the first time, reaching 20,887; Saskatchewan logged 4,784 permits, British Columbia 1,517, Manitoba 103, Eastern Canada 131 and Northern Canada 32, its highest level in 16 years.

EnCana easily outstripped the operators with 5,713 new well licenses, followed by Canadian Natural Resources at 1,713, Husky 1,381, EOG Resources 1,182 and Apache Canada 999.

Adding to the momentum entering 2004, governments sold 12.2 million acres of exploration land for C$1.71 billion and collected another C$707 million for another 7.86 million acres of work bid commitments in Eastern Canada, Northern Canada, British Columbia and Saskatchewan.

The Northwest Territories attracted only C$1.1 million in bids for 197,000 acres.