Oil Field News

Drilling Rig Activity and Caodc Drilling Rig Utilization

DRILLING RIG ACTIVITY

May 21, 2015

  Active Down Total % Active
Western Canada
AB 56 470 526 11%
SK 13 118 131 10%
BC 15 67 82 18%
MB - 15 15 0%
WC Total 84 670 754 11%
 
CAODC DRILLING RIG UTILIZATION
 
May 19, 2015
 
  Drilling Down Total Util.
AB 44 483 527 8%
BC 17 66 83 20%
MB - 19 19 0%
SK 9 117 126 7%
EC - 2 2 0%
NT - 0 0 0%
Total 70 687 757 9%
CAODC chart is updated weekly.

Canadian Natural swings to loss on lower oil prices

 Canadian Natural Resources Ltd, the country's largest independent oil and gas producer, said on Thursday it swung to a loss in the first quarter due to sharply lower oil prices even as production rose by nearly a third.

The company reported a net loss of C$252 million ($208.3 million), or 23 Canadian cents per share, compared with a profit of C$622 million, or 57 Canadian cents, in the first quarter of 2014.


Operating profit, which excludes most one-time items, fell 98 percent to C$21 million, or 2 Canadian cents, hampered by weak prices for the company's heavy and synthetic crude oil and a 39 percent fall in Canadian natural gas prices.

The company said it plans to cut its 2015 capital spending plan for a third time, removing a further C$300 million to push its expected annual spending down to C$5.75 billion.

In January, the company slashed this year's capital budget by 28 percent and postponed a heavy oil project to weather oil prices that had dropped more than 50 percent since last June. It later cut another C$150 million from the capital budget.

Still, it plans to go ahead with a spinoff of its royalty lands in Western Canada and the expansion of its Horizon oil sands project.

Canadian Natural's cash flow, a key measure of its ability to pay for expansion plans, fell 36 percent to C$1.37 billion, or C$1.25 per share, in the first quarter.

Production rose 33 percent to 898,053 barrels of oil equivalent per day, from 684,647 boepd in the same period last year on higher output from the Horizon plant, increased natural-gas production and a stronger performance in its heavy oil operations in Western Canada.

Canadian Natural shares, which have dropped 13 percent over the past 12 months, were down 2.2 percent to C$37.61 on the Toronto Stock Exchange.
 
Source: Reuters

Canada Stocks Fall to Month Low as Oil Shares Slump on Election

Canadian stocks fell to a one-month low as energy shares plunged after election results in Alberta raised concern over the possibility of higher corporate taxes in the province.

The New Democratic Party, led by Rachel Notley, ended a 44-year Progressive Conservative dynasty by winning a majority of districts in elections Tuesday, according to Elections Alberta. The NDP promises to boost corporate taxes, review the government’s take of energy revenue, scale back advocacy for pipelines and phase out coal power more quickly.

The Standard & Poor’s/TSX Composite Index fell 150.05 points, or 1 percent, to 15,023.89 at 4 p.m. in Toronto, the lowest level since April 1. The loss trimmed the benchmark Canadian equity gauge’s advance in 2015 to 2.7 percent.

 

Energy companies dropped 2.5 percent, the most of 10 groups in the S&P/TSX Composite Index and biggest loss for the industry since Feb. 4. RMP Energy Inc. sank 11 percent. Suncor Energy Inc., Canada’s biggest oil producer by market value, tumbled 3.4 percent and Canadian Natural Resources Ltd. fell 2.9 percent.

“It’s completely devastating” for energy companies and investors, Rafi Tahmazian, who helps manage C$1 billion ($831 million) in energy funds at Canoe Financial LP in Calgary, said on Tuesday. “The perception from the market based on their comments is they’re extremely dangerous.”

Materials companies in the index slid 1.3 percent, as seven of 10 industries in the S&P/TSX retreated.

Barrick Gold Corp. slumped 3.8 percent and Iamgold Corp. fell 6.9 percent as the price of the metal for the first time this week. Federal Reserve Chair Janet Yellen said bond yields could see a sharp jump after the central bank raises interest rates, crimping demand for gold as an alternative investment.

Enbridge Inc. lost 2.7 percent, the most in three months, after reporting results that missed analysts’ estimates. Canada’s largest pipeline company posted a first-quarter loss on adjustments to contracts meant to guard against swings in currencies, oil prices and interest rates.

Pacific Rubiales Energy Corp. rose 12 percent, to a Jan. 2 high. Alfa SAB, already the largest shareholder in Pacific Rubiales, joined Harbour Energy Ltd. in a takeover offer of about C$2.1 billion for the Colombian company to expand into the oil industry.

Source: Bloomberg

First Land Sale of 2015 Brings in $17.5 Million

The February sale of petroleum and natural gas rights raised $17.5 million in revenue for the province, bringing total land sale revenues for the 2014-15 fiscal year to $164.7 million.
 
The 2014-15 March budget forecast $99 million in land sale revenue.  The final total for the fiscal year has exceeded the forecast by $66 million.  “Robust sales in April and August of last year accounted for the increase in land sale revenues over the initial forecast,” Economy Minister Bill Boyd said.  “Saskatchewan remains one of the best places for oil and gas companies to invest.  The sector will continue to play a part in our diversified economy in 2015.” 

The February sale saw the Weyburn-Estevan area receive the most bids with sales of $8.3 million.  The Lloydminster area was next at $5.3 million, followed by the Swift Current area at $3.2 million and the Kindersley-Kerrobert area at $694,039. 

The highest price paid for a single parcel was $3.5 million.  Windfall Resources Ltd. acquired the 1,036-hectare lease east of St. Walburg.  The highest price on a per-hectare basis was $8,586.  STOMP Energy Ltd. bid $1.1 million for a 126.6-hectare lease southeast of Estevan.
 
The next sale of Crown petroleum and natural gas rights will be held on April 6, 2015.

Source: Government of Saskatchewan

December Land Sale

December Land Sale Brings 2014 Total to $198 Million

Released on December 4, 2014

The December sale of petroleum and natural gas rights raised $18.3 million in revenue for the province, bringing final land sale revenues for the 2014 calendar year to $197.9 million.

The average of $988 per hectare for land sales in 2014 ranks third highest all-time, behind the $1,461 per hectare averaged in 2008 and the $1,029 per hectare averaged in 2010.

“Saskatchewan has worked hard to develop a positive investment climate for the oil and gas industry, so it was reassuring when the recently released Fraser Institute’s annual Global Petroleum Survey once again ranked Saskatchewan as the number one place in Canada and third globally for oil and gas investment,” Economy Minister Bill Boyd said.  “Record drilling and impressive land sale revenues over the past few years suggest that industry is pleased with our policies and regulatory regime, and given that we are competing on a global level for investment, the Institute’s report is something we take very seriously.”

The December sale saw the Weyburn-Estevan area receive the most bids with sales of $11.9 million.  The Kindersley-Kerrobert area was next at $4.5 million, followed by the Lloydminster area at $973,220 and the Swift Current area at $864,218.  The highest price paid for a single parcel was $1.3 million.  Ranger Land Services Ltd. acquired the 1,165-hectare exploration licence north of Arcola.  The highest price on a per-hectare basis was $9,319.  Northend Resources Ltd. bid $603,404 for a 64.75-hectare lease southeast of Estevan.

The next sale of Crown petroleum and natural gas rights will be held on February 2, 2015.


Source: Government of Saskatchewan

STRONG AUGUST LAND SALE BRINGS IN $48 MILLION

With $48.4 million in revenue raised at Saskatchewan’s August sale of petroleum and natural gas rights, the 2014 calendar year total for land sales is now $158 million, already surpassing land sale revenue totals for both the 2012 and 2013 calendar years with two sales remaining.

Industry continues to place a premium on Saskatchewan oil and gas rights.  The average price per hectare received for the sale was $1,916/hectare, the third highest on record.  The April 2008 sale holds the title for highest average price per hectare for a single sale at $2,725/hectare, followed closely by the February 2008 sale at $2,495/hectare.

“The Bakken and Shauanvon light-oil plays in southern Saskatchewan are both prone to spectacular single-parcel results that we experienced once again in this sale,” Economy Minister Bill Boyd said.  “However, we’re equally pleased about land acquisitions in the heavy oil-prone areas of the province that are consistent in sale-after-sale, year-after-year.

“By any measure, the volume of heavy oil in the province, estimated at 20 billion barrels of heavy oil in place, is impressive, but recovering this oil is a complex and capital-intensive process.  The province applauds both the oil and gas industry and the research institutions providing innovation and investment in the continuing effort to maximize production from this resource.”

The August sale saw the Weyburn-Estevan area receive the most bids with sales of $43 million.  The Lloydminster area was next at $2.1 million, followed by the Swift Current area at $1.8 million and the Kindersley-Kerrobert area at $1.5 million.  The highest price paid for a single parcel was $17.1 million.  Standard Land Company Inc. acquired the 2,201-hectare exploration licence east of Estevan.  The highest price on a per-hectare basis was $10,136.  Plunkett Resources Ltd. bid $634,520 for a 62.6-hectare lease southeast of Estevan.

The next sale of Crown petroleum and natural gas rights will be held on October 6, 2014.

Source: Governement of Saskatcewan

JUNE LAND SALES GENERATE $11 MILLION

Released on June 5, 2014

Saskatchewan’s June sale of petroleum and natural gas rights brought in $11 million in revenue, bringing the total for 2014 land sales to $110 million after three sales.

“Industry continues to place a premium on Saskatchewan’s oil and gas rights, as land sales to date in 2014 have averaged $920 per hectare compared to an average of $450 per hectare in Alberta,” Energy and Resources Minister Tim McMillan said.  “Saskatchewan remains a top choice for industry to make significant investments in land acquisition, drilling activity, and service and supply expenditures.”

In November 2013, the Fraser Institute released the results of an international survey of petroleum executives that ranked Saskatchewan first among Canadian jurisdictions for oil and gas investment, and near the top globally.  Saskatchewan rated particularly well in regards to policy, taxation regime and investment and regulatory climate.

The June sale saw the Weyburn-Estevan area receive the most bids with sales of $6.5 million.  The Lloydminster area was next at $3.0 million, followed by the Kindersley-Kerrobert area at $916,852 and the Swift Current area at $628,353.  The highest price paid for a single parcel was $1.2 million.  Aldon Oils Ltd. acquired the 3,366 hectare exploration licence near Radville.  The highest price on a per-hectare basis was $7,515. Scott Land & Lease Ltd. bid $486,630 for a 64.75 hectare lease east of Estevan.

The top work commitment bid for the oil shale special exploratory permit block on offer near Hudson Bay was $750,000 from Prairie Land & Investment Services Ltd.

The next sale of Crown petroleum and natural gas dispositions will be held on August 11, 2014.

Source: Saskatcewan Ministry of Economy

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