News Releases

News Release - Manitoba

December 12, 2008

MANITOBA EXTENDS ITS PROGRAM TO ENCOURAGE OIL EXPLORATION



The provincial government is showing its commitment to Manitoba’s oil and gas industry by extending the Manitoba Drilling Incentive Program for another five years to January 2014, Science, Technology, Energy and Mines Minister Jim Rondeau announced today.
 
The program offers incentives to encourage investment in the exploration for and development of Manitoba’s petroleum resources.
 
“We believe extending the incentive program will make it more attractive to the oil industry when considering investing in Manitoba’s oil and gas resources,” said Rondeau.  “The package offers important incentives for exploration and development drilling, horizontal wells and enhanced oil recovery projects, and companies have indicated they are pleased to hear it is continuing.”
 
“The continuation of this program allows the Manitoba oil patch to be competitive with Saskatchewan and the other producing provinces,” said Brad Thiessen, Manitoba committee chair, the Small Explorers and Producers Association of Canada.  “Hopefully the program will sustain the high levels of activity that Manitoba has seen in the last number of years.”
 
During the past five years, the oil industry has spent $1.5 billion while drilling over 1,000 new wells in the province and providing employment for more than 1,500 Manitobans. As well, oil production in the province has doubled since 2004 to more than 22,000 barrels a day.
 
“The drilling incentive program, together with advantages of low drilling density and low drilling and production costs, make Manitoba an attractive place to pursue oil and gas investment opportunities,” said Rondeau.  “We believe extending our program will lead to more drilling activity and therefore new discoveries.”
 
Additional information regarding the Manitoba Drilling Incentive Program can be obtained from the Petroleum Branch at 204-945-6577 or at www.gov.mb.ca/itt/petroleum.
 
- 30 -