Bakken land holds status

Canada E&P companies hang onto popular Bakken petroleum system acreage

Gary Park

For Petroleum News Bakken

The Canada-based E&P companies that feed off the Bakken petroleum system appear to be holding tight to their land holdings despite the pressure on some to sell assets and strengthen their financial position.

An industry survey of undeveloped properties in Canada, although it did not provide a detailed breakdown of Bakken-related land, shows that most of the companies added to their portfolios in 2012.

Easily leading the way was Crescent Point Energy, which raised its gross interests to 3 million acres (2.69 million net) from 2.72 million gross and 2.34 million net at the end of 2011.

Fast-emerging Painted Pony Petroleum, which is heavily focused on southeastern Saskatchewan, increased its prospects to 325,663 gross acres (241,174 net) from 303,655 gross (208,311).

Lightstream Resources (formerly PetroBakken) trimmed some of its gross positions to 1.156 million acres from 1.2 million entering 2012, but its net interest was virtually unchanged at 1 million acres.

Others expanding

Others who pursued an expansion path included Renegade Petroleum, an emerging player in Saskatchewan, Manitoba, Alberta and North Dakota, which ended 2012 with 244,792 gross acres (221,221 net) compared with the previous year’s 117,724 gross acres (105,325 net).

LGX Oil + Gas (formerly Bowood Energy), which is heavily committed to the Alberta Bakken, started 2013 with 209,619 gross acres (186,477 net), up from 194,390 gross (150,519 net) a year earlier.

Legacy Oil + Gas, which sold some of its assets to LGX, remains among the most active operators in Saskatchewan and Manitoba and also has interests in North Dakota.

Its land holdings shrunk during 2012 to 408,194 gross acres (318,758 net) from the previous year’s 593,720 gross acres (446,721 net).

Bellatrix Exploration, with key stakes in the Bakken and Viking formations of Western Canada, pulled back to 312,160 gross acres (206,638 net) from 354,351 gross (224,559 net) at the end of 2011.

Undeveloped holdings up

Overall, undeveloped land holdings in Canada rose by 3.18 million gross acres in 2012 to 224 million acres, with net stakes increasing by 5.57 million acres to 154.86 million acres.

Leading the list of gross acreage holders, mostly tied to oil sands properties, were Royal Dutch Shell at 36.18 million, Chevron Canada 26.92 million, Canadian Natural Resources 17 million, Total 16.6 million, Husky Energy 13.1 million and Suncor Energy 12.5 million.

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