October-November Licence Activity Review – CNRL Runs The Show

Canadian licensing activity increased for the second month in a row. From October 13 to November 12, 691 licences were obtained. This represents an impressive 35.8% increase compared to the previous month, which saw companies obtain 509 new licences. This past month’s licences were spread across 89 unique licensees, representing an average of 7.8 licences per licensee. Using data from BOE Intel and Petro Ninja, we’ve identified a number of trends across the various producers and producing formations.

Licensees

• CNRL was by far the most active licensee this month. The company obtained 111 licences across Alberta, BC and Saskatchewan. The company split the majority of its licences between the Montney and the Clearwater. Interestingly, it appears that all of CNRL’s BC licensing was concentrated at Septimus in Township 082-18. The company also had some noteworthy licensing activity west of Grande Prairie which we highlighted in a separate article.
• Tourmaline licensed heavily across its NEBC, Triassic Peace River Oil and Alberta Deep Basin assets. In particular, the company licensed 20 wells in the Deep Basin area, with the majority targeting the Spirit River formation. Tourmaline’s activity in the month ahead will be worth keeping tabs on, given the fact its acquisition of Bonavista Energy closed on November 17, 2023.
• Murphy Oil’s 24 licences were concentrated within four townships at Kaybob, and all are projected for the Duvernay. It’s significant that the company has continued to licence actively after the closure of its sale of certain non-core Kaybob Duvernay and all of its Placid Montney assets.
• Despite having sent shockwaves through the Montney with its purchase of Hammerhead Energy, Crescent Point’s licensing activity was mostly focused in Saskatchewan through the October-November period. Of the company’s 16 licences, only 1 is located in the Alberta Montney with the remainder in south Saskatchewan; these licences are split fairly evenly between its Shaunavon, Viewfield Bakken and Flat Lake assets.

Projected Formations

• Montney – The Montney was (once again) the most projected formation for licences in Canada during the October-November period. In contrast to last month, more of this month’s Montney licensing was conducted in Alberta than in BC. The Alberta Montney was targeted with 81 licences, while the BC Montney was targeted with 75. Crew was behind only CNRL with 35 Montney licences obtained (CNRL obtained 47 Montney licences). Crew’s licences were actually part of a larger 88 licences obtained over the last three and a half months. These licences complement the received permit from the BC Energy Regulator approving the construction of its planned 180 mmcf/d Groundbirch gas plant.
• Clearwater – The Clearwater formation was also heavily licensed last month. With 91 licences obtained, the Clearwater saw its busiest month since we started compiling monthly Licence Activity Reviews back in March of this year. CNRL (44 licences) was the most active licensee in the Clearwater as well, with Spur Petroleum obtaining 13. The company’s Clearwater licences during the period were split between the Marten Hills field and another undefined field up towards South Wabasca Lake. The company has licensed steadily in the Clearwater throughout the year. This steadiness could also be said to characterize Tamarack Valley’s licensing behaviour this year, and the company obtained a further 9 licences targeting the Clearwater.
• Duvernay – As mentioned above, Murphy Oil was responsible for 24 Duvernay licences this month. Other active Duvernay producers include Paramount Resources (5 licences), Cygnet Energy (3 licences) and Baytex (3 licences). Recall that Cygnet acquired its Duvernay assets back in September,and these 3 licences are the companies first since that acquisition.

To keep track of the latest licensing activity in the Canadian oil patch for yourself, check out BOE Intel.