Developments in Western Canada in 1965

Overall exploration expenditures were at an all-time high of about $405 million in Western Canada during 1965, up $70 million from 1964. As in previous years, most of the increase resulted from higher Crown land sales and, to a lesser extent, from increased wildcat drilling which reached a record high. Geophysical work remained at about the same level as the past 5-6 years but surface mapping continued to decline sharply. Most of the exploration interest and significant discoveries were in the Middle Devonian, in the Gilwood Sand of north-central Alberta, the dolomite beds of the Muskeg-Keg River Formations of northwestern Alberta, and the Slave Point reefs of northwestern Alberta and adjoining areas of British Columbia and the Territories. Other highlights of 1965 were: (1) a sharp rise in land acquisitions, particularly in the Territories and Saskatchewan; (2) record production in all sectors (liquids, gas, and sulfur) of the industry; and (3) approval by the National Energy Board of new gas exports (previously approved by Alberta in 1964) from Alberta of 3.4 TCF (1.61 TCF for Alberta and Southern, 1.63 TCF for Trans-Canada, and 0.11 TCF for Canadian Montana) for approximately a 25-year period. The Board altered its previous rules for calculating surplus gas by changing from 30-year demand and reserves to 30-year demand and 20-year reserves. In establishing surplus, the Board also modified its previous stand by allowing reserves beyond economic reach to be included as surplus. Comparisons below are with 1964: I.DrillingTotal Drilling up 311 (9.5%) to 3,579. Exploratory Tests up 206 (16%) to 1,490. Wildcat Discoveries-oil 125 (up 15): gas 91 (ud 11). Outposts and DPTs.--oil 109 (up 10); gas 61 (down 1). Development Wells up 105 (5%) to 2,089. Main Areas-Alta.: Swan Hills-House Mountain (Beaverhill Lake); Pembina-Willesden Green-Garrington (Cardium) : Mitsue-Nipisi (Gilwood).Sask.: Southeast Saskatchewan (Mississippian); Cantuar (Jurassic); Coleville-Dodsland (Viking K)B.C.: Nancy-Peejay (Halfway); Boundary Lake (Triassic).II.Exploratory MethodsExpendituresup $70 million (21%) to $405 MM. Seismicdown 5 months (1%) to 590 mos. Gravityup 1U months (40%) to 35 mos. Surface Mappingdown 19 months (21%) to 71 mos.III.ProductionLiauidsup 69 MBPD (8%) to 919 MBPD. Gas Salesup 210 MMCFPD (8%) to 2,780 MMCFPD. Sulfurup 331 long tons/day (8%) to 4,353 long tons/day.IV.ExportsLiauidsup 25 MBPD (9%) to 315 MBPD. Gasup 35 MMCFPD (3%) to 1.115 MMCFPD.V.Reserves (Proved remaining)Total Liquidsup 640 MM bbls. (9%) to 7.7 billion bbls. Gasup 955 BCF (2%,) to 44.2 TCF. Sulfurunchanged at 69.1 MM long tons.VI.LandHoldingsup 45 MM acres (15%) to 335 MM acres. Crown Salesup $56 MM (48%) to $173 MM. Crown Rentalsup $6 MM (14%) to $50 MM.