News Releases

News Release - Manitoba

September 8, 2008

MANITOBA OIL PRODUCTION DOUBLES SINCE 1999: RONDEAU


This Year Alone, 350 New Wells Expected to be Drilled, Production to Hit Eight Million Barrels Worth $800 Million

Manitoba oil and gas exploration hit a milestone this year, doubling in production since 1999 to 22,000 barrels a day, Science, Technology, Energy and Mines Minister Jim Rondeau announced today.  The number of producing wells has also risen dramatically, increasing to 2,470 from 1,323, Rondeau said. 
 
“The benefits from our oil industry have grown considerably and this year we have seen dramatic rises,” said Rondeau. “It is predicted that Manitoba will see 350 new wells drilled in 2008 with production to top eight million barrels at a value of more than $800 million, which is great news.  By comparison, production for 2007 was valued at $603 million.”
 
Four times a year, Manitoba conducts sales for leases on Crown-owned minerals. Through a competitive bidding process completed on Aug. 13, all drilling rights for the 51 lease parcels offered, covering more than 3,600 hectares (8,935 acres), were sold. The average price per hectare was $648.91 ($262.61 per acre). So far this year, 107 lease parcels have been sold, totalling just over $4 million in revenue.
 
This is the third of four sales scheduled for 2008 and is the third-highest sale on record. With one sale remaining this calendar year, the province has received over $4.1 million for three land sales. The next sale is scheduled for Nov. 12. To date, 206 wells have been licensed, resulting in the drilling of 191 new wells.
 
Since 2004, almost 1,400 wells have been drilled in Manitoba with 63 per cent of those in the Sinclair Field. Other areas with significant drilling include Virden, Daly, Pierson, Waskada, Whitewater and Regent.
 
More information about crown and oil gas rights in Manitoba is available at www.gov.mb.ca/petroleum or by calling Manitoba Science, Technology, Energy and Mine’s Petroleum Branch at 204-945-6577 or 1-800-223-5215 (toll-free).
 
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BACKGROUND INFORMATION ATTACHED


Backgrounder
Manitoba Oil Industry Growth - http://www.gov.mb.ca/asset_library/en/newslinks/2008/2008sept/OilandGas.ST.doc