Saskatchewan remains on track to record a significantly higher number of wells drilled in 2010 compared with 2009, the Petroleum Services Association of Canada predicts in its third-quarter update.
The association expects there will be 2,670 wells drilled in the province this year, up 41 per cent over the final number of 1,892 wells drilled in 2009. That compares to a spring forecast of 2,580 wells drilled in 2010 from a final 2009 number that was previously thought to have been 1,750.
The activity is largely on the oil front where prices have been sufficient to provide a reasonable rate of return on investment, compared to natural gas where "languishing" prices have made most conventional plays uneconomic, the association reported.
"It really is an oil story across Western Canada," said association president Roger Soucy.
The association bases its updated 2010 forecast on average natural gas prices of $4.50 per thousand cubic feet and crude oil prices of US$78.50 per barrel.
from Western Investor, October 2010
