NEW RECORD SET FOR DRILLING OF HORIZONTAL OIL WELLS

Saskatchewan has set a new record for the drilling of horizontal oil wells in the province.

Year-end statistics from the Ministry of Energy and Resources show that 1,531 horizontal oil wells were drilled in 2010. That's an 88 per cent increase over the figure for 2009 and a 13 per cent increase over the previous record set in 2008.

"Horizontal well drilling has now become the standard in the Canadian oil industry," Energy and Resources Minister Bill Boyd said. "Twenty years ago it was experimental technology that our province pioneered, but now it represents more than 50 per cent of our total oil production."

Horizontal wells accounted for 56 per cent of the 2,730 oil wells drilled in Saskatchewan last year. The 2,730 figure is a 70 per cent increase over the number of oil wells drilled in 2009 and was above the 2,360 yearly average for oil wells drilled over the last five years.

Boyd noted that horizontal oil wells involve more complicated drilling processes and require more work by his ministry to review and approve well licenses. The ministry is accordingly hiring eight additional staff in its well licensing areas and field offices to deal with industry demands.

"Our oil industry bounced back from a more challenging year in 2009 with great drilling numbers and increased activity in land sales," Boyd said. "We're looking forward to a strong 2011 from the industry and are working hard as a government to be responsive to that activity, and in particular to this new trend in horizontal drilling."

Last year, the province's oil and gas industry recorded approximately $10.5 billion in sales and invested $3.3 billion in exploration and development activity. It provides direct and indirect employment for more than 29,000 people.

-30-

For more information, contact:

Bob Ellis
Energy and Resources
Regina
Phone: 306-787-1691
Email: robert.ellis@gov.sk.ca