Province launches program to keep oil wells producing

The Government of Saskatchewan has launched the Low Productivity and Reactivation Oil Well Program (LPRP) to create new incremental oil production and revenue from low producing or inactive wells. The LPRP promotes industry investment in low-producing or inactive horizontal oil wells through a new royalty structure for eligible wells. In the final year of the four-year LPRP program, it is projected to add 30,000 barrels per day of oil production and generate $21 million in additional royalty revenue for the province. The LPRP can extend the life of wells that have already been drilled and allow access to oil that would otherwise have been left in place. The incremental oil production generated through the program will contribute to reaching Saskatchewan’s Growth Plan goal of increasing oil production to 600,000 barrels per day. Last year, the value of Saskatchewan oil and gas production reached $13.5 billion, with the sector employing more than 26,000 people. Saskatchewan is the second largest oil producer in Canada and sixth largest onshore oil producer in North America.

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