REGINA – The Province of Saskatchewan has introduced a new multi-lateral well drilling program to grow incremental oil production in the province.
“This innovative technique will put more rigs and workers in the field and support the growth plan goal of increasing oil production by 25 per cent to 600,000 barrels per day. Our new program will increase the province’s revenue so we can continue to invest in classrooms, care and communities,” said Minister of Energy and Resources Jim Reiter in a statement.
Multi-lateral drilling configurations allow a single well to access more of the oil reservoir and Reiter estimated between 100 to 200 additional wells will be drilled in the province per year as a result of the program.
“The new incentive program for multi-lateral drilling opens up significant new drilling investment opportunities in Saskatchewan for Cenovus. It aligns with our focus to strategically build our integrated position in the Lloydminster region and we anticipate it will have positive impacts for provincial employment as well as new production growth. We are pleased to see government focus on creative ways to bring more investment to Saskatchewan,” Cenovus Energy CEO Jon McKenzie said.
“The competition for capital investment is fierce and Saskatchewan’s plan to modernize the royalty regime to recognize the use of new drilling technologies provides the right policy environment to attract investment to the province,” Canadian Association of Petroleum Producers president and CEO Lisa Baiton added. “A more competitive royalty framework will help unlock valuable oil resources in Saskatchewan and will, in turn, create more jobs and additional revenues for the government and municipalities.”
The oil sector is one of Saskatchewan’s largest industries, the release said, adding the province is the second-largest oil producing jurisdiction in Canada supporting over 26,000 jobs.
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