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ENERGY & MINES



BC Land Sale

By Stephen Marsters

BC's June land sale attracted $3.81 million in bonus bids, with one of the nine parcels sold generating $2.1 million for government coffers.

Basm Land & Resources Ltd tendered the bonus high bid and produced the per-hectare high for the sale of $7,965.75 for a 264-hectare lease.

Meanwhile, Windfall Resources Ltd picked up a 264-hectare lease for $903,130.80. That produced a per-hectare price of $3,420.95.

The June sale generated an average price of $1,211.04 on the sale of 3,147 hectares. Year-to-date, the province has brought in $70.28 million on 35,191 hectares at an average price $1,997.20.

At the same point last year, the government had collected only $4.22 million in total, on the sale of 27,377 hectares at $154.20 per hectare.

JuneWarren-Nickle's Energy Group

Alberta Land Sales

By Richard Macedo

The Alberta government attracted $4.69 million in bonus bids at its June 7th land auction, the lowest at a single sale in 2017.

Industry picked up 27,632 hectares at an average price of $169.64, also the lowest average price this year.

The Alberta government attracted $13.78 million in bonus bids on June 21st, highlighted by the sale of parcels targeting the emerging Duvernay oil play in the East Shale Basin.

The Soo Line Resource Group Ltd. bought two parcels that collectively sold for $5.18 million. Each parcel produced per-hectare prices of over $5,000 per hectare.

Overall, industry picked up 40,913 hectares at an average price of $336.69 per hectare.

Year-to-date, the province has collected $180.13 million on 526,080 hectares at an average of $342.39 per hectare. To the same point a year ago, Alberta had collected $63.77 million on the sale of 443,917 hectares at an average price of $143.66.

In the six land sales of the second quarter, the government brought in $97.4 million in bonus revenue.

JuneWarren-Nickle's Energy Group

Rig Release Counts

By Stephen Marsters

Industry has drilled 2,835 wells through the first five months of 2017, excluding experimental holes, up 129 per cent from 1,239 wells rig released in January-to-May 2016.

The 2,835 wells translated into a total of 7.83 million metres of hole, up 115 per cent from 3.64 million metres to the end of May last year.

For May, operators drilled 261 wells compared to 74 a year ago (up 253 per cent).

In Alberta, 157 wells were rig released in May, an increase of 227 per cent from 48 wells drilled in the year-prior period (excluding experimental wells). Through the first five months of the year, the count has lifted 148 per cent to 1,540 wells rig released compared to 621 in January-May 2016.

Operators working in the province have drilled 4.75 million metres of hole to the end of May compared to 2.01 million metres a year ago (an increase of 137 per cent).

Saskatchewan operators drilled 75 wells last month compared to 15 in May 2016 (an increase of 400 per cent). The five-month tally is up 134 per cent, to 951 wells drilled versus 407 wells rig released in the first five months of 2016. Producers have rig released 1.84 metres at the five-month mark compared to 852,082 metres in the year-prior period (up 116 per cent).

To the end of May, 906 of the wells drilled in Alberta had oil or bitumen as an objective compared to 233 wells last year, while 507 were approved for natural gas or CBM targets compared to 277 in the first five months of 2016 (excluding experimental wells). In Saskatchewan, 840 wells have chased oil, up from 391 a year ago.

British Columbia's 28 rig releases in May were up 180 per cent from 10 a year ago, while the five-month tally has increased 56 per cent to 253 compared with 162 in January-May 2016. Operators have rig released 1.06 million metres of hole to the end of May, an increase of 57 per cent from 678,159 metres in the year-prior period.

There were no wells drilled in Manitoba last month, while no wells were drilled in the year-prior period, either. Over the first five months of the year, 85 wells have been rig released in the province compared to 41 in the January-to-May period last year (up 107 per cent). Operators have drilled 156,851 metres in the province compared to 77,435 metres a year ago.

The average length/depth of a well (excluding experimental wells) in Western/Northern Canada declined to 2,755 metres in this year's January-to-May period versus 2,895 metres in the comparable period a year ago.

Rig release counts, including experimental wells

Operators drilled 3,343 wells to the end of May, including experimental wells, an increase of 92 per cent from 1,742 wells rig released in the year-prior period.

In May, producers drilled 263 wells, including experimental holes, up 242 per cent from 77 a year ago.

JuneWarren-Nickle's Energy Group

Well Permit Count

By Stephen Marsters

Operators licensed 696 new wells across the country last month, an increase of 88 per cent from 371 wells granted authorization in May 2016, with Saskatchewan nipping at Alberta's heels for the title of permit count leader.

A total of 3,389 permits have been issued across Canada to the end of May, an increase of 105 per cent compared to 1,655 in the first five months of 2016.

In Alberta, 304 licenses were issued last month compared to 198 in the year-prior period, while the province has granted 1,614 well permits in the first five months of the year, up 74 per cent from 925 to the end of May 2016.

Saskatchewan licensed 287 wells during the month, up from 153 last year. To the end of May, Saskatchewan's license count has lifted 160 per cent to 1,505 from 579 in the comparable five-month period in 2016.

British Columbia approved 98 new licenses during May, an increase from 20 a year ago. Over the first five months of 2017, B.C. has approved 271 new licenses, up 149 per cent from 109 in the January-May 2016 period.

Manitoba granted four well authorizations in May compared to zero a year ago. The license count is up 38 per cent in the January-May 2017 period to 54 compared to 39 a year ago.

Operators in the four western provinces licensed 475 oil and bitumen wells last month (2016: 224), with the five-month tally at 2,322 permits compared to 885 in January-May 2016.

There were 121 gas wells authorized across Western Canada last month, up from 92 a year ago. For the five-month period, 572 gas wells have been permitted compared to 489 gas wells last year.

To the end of May this year, operators have licensed 2,738 horizontal wells versus 1,257 in the comparable period of 2016.

Producers licensed no oilsands evaluation permits last month, off from 24 a year ago. Over the first five months of 2017, operators have permitted only 65 oilsands evaluation wells compared to 148 licenses to the end of May last year.

The top five licensees of new wells in May, excluding experimental and oilsands evaluation holes, were Crescent Point Energy Corp. (52), Canadian Natural Resources Limited (44), Teine Energy Ltd. (38), Whitecap Resources Inc. (36) and Raging River Exploration Inc. (28).

Including experimental wells, the top five licensees in May were: Crescent Point (52), Canadian Natural (44), Teine (39), Whitecap (36) and Raging River (28).

JuneWarren-Nickle's Energy Group