Article (Alberta Oil Magazine): The Best Little Oil Companies in Canada

Date of Source: 21 Oct 2016

Summary:
Fifteen years ago it was common knowledge that oil and gas production in North America was in terminal decline. After decades of exploration, all of the profitable onshore oil and gas in Canada and the U.S. had already been discovered… While the attention of the majors was elsewhere, close to home something happened. Small companies run by entrepreneurial management teams cracked the code on vast amounts of oil and gas located here in North America. […]


Editor’s Commentary:

Alberta Oil Magazine’s Jody Chudley picks out her ten favorite Canadian oil and gas producers, all of whom have unequivocally shown that there are still significant quantities of economic oil and gas at present-day prices. Kelt Exploration, Crescent Point Energy, Bonterra Energy, Peyto Exploration and Development, Vermillion Energy, Canadian Natural Resources Ltd, Tourmaline Oil, Seven Generations Energy, Painted Pony Petroleum, and Raging River Exploration all have one thing in common: significant exposure to the Western Canadian Sedimentary Basin (WCSB). The WCSB, which underlies much of British Columbia, Alberta, and Saskatchewan, hosts numerous plays, and many of its areas boast stacked pay potential. Its geology is reminiscent of a Northern Permian Basin, but with still much less expensive acreage (and further proximity from customers and major logistics hubs).

The WCSB is continuous with the Williston Basin underlying much of North Dakota and Montana.

In last few years, production growth from WCSB’s gassy Montney play has shocked the market despite depressed gas price gases and oppressive differentials. Other nearby plays possess similar yet unproven potential. A 2014 PTAC report indicates that “the Duvernay formation underlies much of the Cardium formation area, is much thicker and richer in hydrocarbons per section than the Cardium, and is estimated to contain considerable volumes of oil and natural gas liquids (NGLs)”. More recently, operators have begun to drill more aggressively into the deeper Duvernay Formation, perhaps confirming its economic potential.

The future looks bright for these producers who continue to focus on perhaps the most prolific North American petroliferous basin.

Article Source: Jody Chudley. The Best Little Oil Companies in Canada: Our picks for the top junior oil companies of the past, present and future. Alberta Oil Magazine. 21 Oct 2016. Original content accessible: https://www.albertaoilmagazine.com/2016/10/best-little-oil-companies-canada/


Updates to the Read List are meant to keep readers informed of stories and analytical highlights from third party sources that I find particularly relevant and worth sharing. Content that was recommended prior to 2017 is accessible through the Read List Archives.