OIL AND GAS DEVELOPMENTS IN WESTERN CANADA IN 1989

There were 5513 wells drilled in western Canada during 1989, 30% fewer than in 1988. Total meterage drilled was 6,459,797 m, for an average well depth of 1172 m. Exploratory drilling in 1989 dropped by 13% and development drilling by 40% from 1988 levels. British Columbia was the only area in western Canada with increased activity. The industry continued to acquire more acreage for less total bonus at provincial Crown sales throughout western Canada. During 1989, 3,564,827 ha were acquired for a total bonus of $484,872,005. Although the total disposition of Crown lands decreased only 4%, the average bonus dropped to $136/ha, down 26% from 1988. In Alberta, the most active exploration areas were the southern and eastern Mesozoic gas play, the western deep Devonian gas play, the oil plays on the adjacent to the Peace River arch, and the Middle Devonian carbonate oil plays in the northwest. In British Columbia, the most active exploration areas were the Mesozoic and Paleozoic gas plays in the northeastern portion of the province. For the first time in 5 years, Crown drilling rights were issued within the Fraser Valley in the southwest. There was a focus on gas exploration in the province as pipeline reversal was implemented, permitting access to Canadian and California markets through the Alberta transportation network. In Manitoba, exploration and development activity continued to decline. In northern Canada, exploratory drilling success, offering of Crown lands for exploration, approval of gas exports, and indications that many of the Native lands claims may be approaching settlement, all provided exploration encouragement for the next decade. Exploration activities occurred throughout the North-west Territories from the offshore Beaufort to the southern border. In Saskatchewan, active exploration areas were shallow Mesozoic gas plays in the western portions of the province and deep Paleozoic oil plays in the south.