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BC Land Sale

By Richard Macedo

The BC May land sale attracted $3.41 million in bonus bids, with two of the eight parcels sold generating $3.19 million for government coffers.

The May sale generated an average price of $1,085.42 on the sale of 3,143 hectares. Year-to-date, the province has brought in $66.47 million on 32,044 hectares at an average price $2,074.41.

Land sale highlights

Basm Land & Resources Ltd. tendered the bonus high bid of $2.79 million, a parcel which averaged $5,283.83.

2017
Sale Date Hectares Bonus ($) Average Price / Hectare
January 7 764 $39,621,805 $5,103.00
February 8 177 $3,690,533 $451.33
March 8 201 $4,825,618 $588.42
April 8 402 $14,922,984 $3,154.74
May 3 143 $3,411,483 $1,085.42
2017 Total 35 687 $66,472,432 $1,862.65

 

Land Sale Annual History
Year Hectares Bonus ($) Average Price / Hectare
2007 595 559 $1.05 billion $1,758
2008 756 752 $2.66 billion $3,518
2009 389 664 $892.9 million $2,291
2010 381 132 $844.4 million $2,215
2011 191 529 $222.68 million $1,162.66
2012 136 521 $139.26 million $1,020.08
2013 119 095 $224.68 million $1,886.60
2014 148 705 $382.79 million $2,574.17
2015 62 197 $18.36 million $295.13
2016 96 617 $15.19 million $157.22
JuneWarren-Nickle's Energy Group

Alberta Land Sales

By Richard Macedo

The Alberta government attracted $18.76 million in bonus bids at its May 10th sale, as it continues to add to its yearly total, which is already just under $10 million off the entire haul collected for 2016.

Industry acquired 32,816 hectares at an average of $571.78.

Highlights included a land sale high bid of $3.21 million by The Land Group Inc. It paid an average price of $4,188.04.

A further two parcels combined for bonus bids of $5.3 million. Both were acquired by Stomp Energy Ltd.

Also at the sale, Buffalo Hill Resources Ltd. acquired a parcel for $1.65 million at an average of $3,227.89.

Bidding under its own name, Blackbird Energy Inc. acquired a license for $1.06 million at an average of $4,158.20.

Land sale highlights

Scott Land & Lease Ltd.’s successful $5.11 million bid for an almost 10-section parcel was the land sale high bid, generating an average price of $2,046.

Britt Resources Ltd. picked up a licence for almost 11 sections for $4.44 million at an average of $1,578.40.

Oilsands parcel sold

Also at this sale, MSL Land & Cattle Company Inc. picked up a 1,152-hectare lease in the Cold Lake Oilsands Area for $1.02 million, which generated an average price of $882.03.

The Alberta government attracted $22.47 million in bonus bids on May 24th -- the second-highest haul of the year.

Industry picked up 52,345 hectares at an average price of $429.23.

Year-to-date, the province has collected $161.66 million on 457,534 hectares at an average of $353.34. It has sailed past the total collected for all of 2016, as noted in the table below.

2017
Sale Date Hectares Bonus ($) Average Price / Hectare
January 11 66 088 $12,725,037 $192.55
January 25 22 717 $5,216,812 $229.64
February 08 86 964 $35,067,580 $403.24
March 08 52 859 $9,823,122 $185.84
March 22 62 158 $19,892,312 $325.05
April 05 37 920 $11,138,257 $293.73
April 26 43 923 $26,568,594 $608.44
May 10 32 816 $18,763,529 $571.78
May 24 52 345 $22,468,234 $429.23
2017 Total

457 534

$161,663,478 $353.34

 

Land Sale Annual History
Year Hectares Bonus ($) Average Price / Hectare
2006 4 231 290 $3,433,708,927.04 $811.50
2007 3 006 658 $1,360,413,583.19 $452.47
2008 3 682 798 $1,228,520,837.80 $333.58
2009 1 842 058 $741,673,011.95 $402.63
2010 3 983 622 $2,414,581,311.83 $606.13
2011 4 606 952 $3,641,012,381.26 $790.33
2012 3 158 488 $1,120,780,950.83 $354.85
2013 2 277 948 $698,321,632.93 $306.56
2014 1 089 453 $494,025,614.35 $453.46
2015 1 615 398 $298,739,730.19 $184.93
2016 996 577 $148,563,229.17 $149.07
JuneWarren-Nickle's Energy Group

Crew Energy

Funds from operations for Crew Energy Inc. totaled $27.7 million in the first quarter, more than double the same period in 2016, and increased 125 per cent on a per share basis to 18 cents per share from eight cents per share in Q1 2016.

Subsequent to the end of the quarter, the company entered into an agreement of purchase and sale for the disposition of non-core assets in the Goose area of NE BC comprised of approximately 18,400 net acres of undeveloped land with no production or assigned reserves for $49 million.

In NE BC, Crew drilled 11 wells and completed five wells, and currently has an inventory of 20 drilled and uncompleted wells, 18 of which are in Greater Septimus and Groundbirch.

The company continued the advancement of its Montney development plan with site work on the West Septimus facility expansion to 120 mmcf per day and the acquisition of 10 contiguous sections of surface rights that will accommodate the planned Groundbirch facility and the drilling of a minimum of 150 wells.

NE BC Montney - Greater Septimus overview

During the first quarter, Crew continued to focus on drilling and completions activities primarily at the Greater Septimus area, while advancing its West Septimus facility expansion. The company directed the majority of its first quarter capital to the Greater Septimus, including $14.1 million allocated to the doubling of its West Septimus processing facility from 60 mmcf per day to 120 mmcf per day. In addition, Crew drilled ten Montney wells and completed three Montney wells of its budgeted eight well Greater Septimus completions program in the quarter.

NE B.C. Montney - Groundbirch overview

Crew spud the first of two delineation wells at Groundbirch that will employ the latest completion technology as part of further delineating the significant Groundbirch resource and in preparation for development drilling in 2018 as part of the long-term growth plan. The company also acquired ownership of 10 sections of surface rights at Groundbirch on which it has planned the construction of a gas plant and associated Montney development of a minimum of 150 wells. Ownership is expected to reduce surface lease costs, improve access and timing of operations, and provide access to a major rail line for potential trans-load capability in addition to providing access to proprietary gravel for lease and road maintenance and construction.

JuneWarren-Nickle's Energy Group

Tourmaline Oil

By Richard Macedo

Tourmaline Oil Corp. is currently operating three drilling rigs in the NEBC Montney complex and expects to drill a total of 24 new wells during the second quarter.  Two nine-well pads, drilled during Q1 of 2017, will be fracture stimulated and brought on production during Q2.

The Doe 2-11 gas plant, the company's third plant in the Sunrise-Dawson complex, came on production as planned during the last week of March.

The development plan for Gundy Creek has been initiated.  The company is operating one rig currently on the property with a second rig planned to commence operations in the third quarter of 2017.  Tourmaline plans to drill 75 wells at Gundy in 2017 and 2018 in advance of company owned-and-operated gas processing facilities that will be commissioned during the second half of 2018.  Tourmaline conducts essentially all of its NEBC frac operations with recycled, non-potable water, sourced from company-owned water recycling facilities constructed over the past four years.

JuneWarren-Nickle's Energy Group

License Count Up

By Stephen Marsters

Operators licensed 372 wells in April 2017, up 53 per cent from 243 wells permitted in April 2016.

Year-to-date in 2017, operators have licensed 2,693 wells across Canada compared to 1,284 in the year-prior period (up 110 per cent).

In Alberta, 127 wells were licensed in April compared to 150 a year ago, with the four-month tally up about 80 per cent to 1,310 permits from 727 licenses in the year-prior period.

Saskatchewan authorized 211 well permits during April, up from 85 licenses last April. Over the first four months of the year, Saskatchewan has licensed 1,218 wells, a 186 per cent increase from 426 last year.

British Columbia approved or input 29 new wells last month compared to eight in the year-prior period. To the end of April, 173 permits have been approved in B.C. compared to 89 in the January-April period last year (up 94 per cent).

In Manitoba, three wells were licensed last month, up from none in April 2016. To the end of April, 50 wells have been permitted in Manitoba compared to 39 licenses last year (up 28 per cent).

Operators in Western Canada licensed 264 oil and bitumen wells last month, up from 127 permits in April 2016. Over the first four months of 2017, governments have approved 1,847 oil or bitumen wells compared to 661 in the comparable period last year.

Across Western Canada, 73 gas wells were permitted in April, up from 55 last year. During the first four months of the year, gas authorizations have climbed to 451 permits from 397 a year ago.

Operators did not license any evaluation wells in April, compared to 66 wells a year ago. Over the first four months of the year, operators have licensed only 65 oilsands evaluation wells, down from 124 to the end of April last year.

Through the first four months of 2017, operators have licensed 2,198 horizontal wells (excluding experimental wells), up from 949 horizontal wells permitted to the end of April 2016.

The top five licensees of new wells in April, excluding experimental and oilsands evaluation holes, were: Teine Energy Ltd. (36), Raging River Exploration Inc. (35), Crescent Point Energy Corp. (34), and Canadian Natural Resources Limited and Tourmaline Oil Corp. with 23 each. (The ranking and counts are the same when adding in experimental licences.)

JuneWarren-Nickle's Energy Group

Rig Release

By Stephen Marsters

Producers rig released 2,595 wells across the country to the end of April, excluding experimental holes, up 123 per cent from the 1,164 wells drilled in the year-prior period, with an increase in drilling in Alberta helping to boost overall counts.

The 2,595 wells translated into 7.12 million metres of hole, a 111 per cent increase from 3.37 million metres in January-April 2016.

The number of wells drilled in Alberta last month rose to 199 from 54 wells a year earlier (excluding test wells). Through the first four months of the year, the count is up 144 per cent to 1,396 wells from 573 in January-April 2016, while 4.27 million metres have been drilled compared to 1.81 million metres in the first four months a year ago (up 135 per cent).

In Saskatchewan, operators rig released 15 wells in April, up from two wells a year ago. Through the first four months of the year, the province’s well count is up 126 per cent to 884 rig releases from 391 a year ago, and the metres rig released have lifted to 1.74 million metres from 822,388 million metres a year ago (up 111 per cent).

British Columbia’s 45 rig releases in April were up from 15 a year ago, while the four-month tally has lifted 48 per cent to 225 wells drilled compared to 152 in the first four months of 2016. Operators drilled 936,044 metres in the province this year to the end of April versus 630,621 metres in the comparable 2016 period (an increase of 48 per cent).

No wells were rig released in Manitoba last month (none in April 2016, either), with the four-month count up 107 per cent to 85 wells from 41 in the comparable period last year. Operators have drilled 156,851 metres to the end of April compared to 77,435 metres a year ago (up 103 per cent).

In Alberta, 828 of the wells drilled to the end of April were licensed to exploit oil or bitumen deposits (compared to 214 last year), while 456 were approved for natural gas targets (compared to 251 last year).

In Saskatchewan, 772 wells were chasing oil (compared to 375 a year ago). No wells were targeting gas this year, the same as last year.

Operators drilled 260 wells in April for 930,809 metres of hole, up 256 per cent from 73 wells rig released a year ago.

Rig release counts, including experimental wells

Operators drilled 3,101 wells to the end of April, including experimental wells, an increase of 86 per cent from 1,664 wells rig released in the year-prior period.

In April, producers drilled 264 wells, including experimental holes, up 243 per cent from 77 a year ago.

JuneWarren-Nickle's Energy Group