Land sales and new well permits point strongly to another lively year in Alberta’s upstream, with coalbed methane and oil setting the pace.
To date the provincial government has raked in C$404 million from auctions of exploration rights, while well licenses tallied 5,598 for the first three months, a sizeable drop of 533 from the same period of 2004, but still one of the healthier years on record. The latest land sale on April 6 generated C$58 million for 277,000 acres, including 175,000 acres that was auctioned, while the balance was sold.
The foothills region of the Canadian Rockies drew the most competitive offers, averaging C$1,048 per hectare for licenses and C$645 per hectare for leases.
Alberta Energy and Utilities Board well authorizations, although down 9 percent overall for the opening quarter, posted an increase in oil-targeted permits to 983 from 939 and a surge in coalbed methane licenses to 635 from 209.
But conventional gas slumped to 3,198 gas wells from 4,131, although exploratory gas wells rose to 1,100 from 1,053.
For Western Canada’s other major producing regions, Saskatchewan approved 568 gas wells (up 113 from a year earlier) and 357 oil wells (down 98).
British Columbia, dominated by its gas plays, slipped fractionally to 262 from 267.
Regulators across Canada issued 6,912 licenses to the end of March, a drop of 7 percent from last year’s record pace of 7,411.
—Gary Park
