From some of the largest oilsands producers to intermediate Montney and Viking players, 2017 was a year of major growth in production volumes for a number of Canadian oil and gas companies.
Most reported production milestones were purchased via corporate acquisitions, while other records were hit as a result of work through the drill bit.
Here’s a look at 10 companies reporting new achievements in 2017.
1. Canadian Natural Resources
Canadian Natural Resources became the first Canadian company to reach production of 1 million boe/d following the close of its $12.74-billion purchase of oilsands assets from Royal Dutch Shell and Marathon Oil on May 31, 2017.
The company averaged production of 1,020,094 bbls/d in the fourth quarter of 2017, up from 859,577 bbls/d in the fourth quarter of 2016.
2. Cenovus Energy
A major transaction also propelled oilsands producer Cenovus Energy to new production highs in 2017.
The company’s $17.7-billion purchase of oilsands and Deep Basin assets from ConocoPhillips in May effectively doubled its production and, despite a series of transactions throughout the year designed to de-leverage the company’s balance sheet, Cenovus had record production in 2017.
In the fourth quarter the company averaged 470,490 boe/d, up from 271,525 boe/d in 2016.
3. Whitecap Resources
Intermediate producer Whitecap Resources is reporting record production in 2017 despite “significant unexpected third-party facility downtime” during the second quarter.
The boost in volumes is the result of another 2017 upstream oil and gas transaction – Whitecap acquired 14,800 boe/d of Saskatchewan light oil production in November for $940 million.
Whitecap, which is focused in Saskatchewan (Viking, southeast, southwest) as well as the Alberta Cardium and Deep Basin, achieved milestone annual production of 57,450 boe/d in 2017, an increase of 25 per cent compared to 45,841 boe/d in 2016.
4. Painted Pony Energy
Natural gas-weighted Montney producer Painted Pony Energy is reporting record production in 2017, partially as a result of its $276.6-million acquisition of fellow Montney operator UGR Blair Creek.
The deal, which closed in May, resulted in a 12 percent boost to the company’s production expectations for the year.
For the full year, Painted Pony reported average daily production at over 257 MMcfe/d, or 42,882 boe/d. This compares to 139.2 MMcfe/d (23,204 boe/d) during 2016.
5. NuVista Energy
NuVista Energy, which focuses on the Montney play as well as the Alberta Deep Basin, says it reached milestone production rates last year.
The company is reporting a record 37,400 Boe/d for the fourth quarter of 2017, which is 51 percent higher than the fourth quarter of 2016, when it produced an average 24,716 boe/d.
NuVista says it was able to make meaningful continued improvement in well results through the application of new technologies including higher intensity fracture stimulation and extended reach horizontal wells, while reducing the total capital cost per stage and per metre completed.
6. Kelt Exploration
Montney-focused Kelt Exploration hit both quarterly and annual production records in 2017.
Production averaged 25,063 boe/d in the fourth quarter, up 27 per cent from 19,762 boe/d during the fourth quarter of 2016.
For the full year, average production jumped to 22,130 boe/d, up 6 percent from 20,947 boe/d in 2016 and ahead of the company’s 2017 target of 21,800 boe/d.
7. Tamarack Valley Energy
The $407.5-million acquisition of Spur Resources in early 2017 contributed to Tamarack Valley Energy’s report of record production for the year.
The transaction immediately added 6,250 boe/d to Tamarack’s portfolio, creating a combined company in early January producing approximately 17,000 boe/d.
The company, which is focused the Viking and Cardium plays in Saskatchewan and Alberta, respectively, reported record production of 22,807 boe/d in the fourth quarter of 2017.
That’s up 11 per cent over Q3 2017 production of 20,541 boe/d and up 99 per cent over fourth quarter 2016 production of 11,453 boe/d.
Annual production averaged 20,136 boe/d, nearly double Tamarack’s 2016 average production of 10,344 boe/d.
8. TORC Oil & Gas
Southeast Saskatchewan and Cardium-focused TORC Oil & Gas reported record production of 21,886 boe/d in the fourth quarter of 2017, a 12 per cent increase from 19,621 boe/d in the fourth quarter of 2016.
The company completed two sets of “tuck-in” acquisitions in 2017 with a combined volume addition of 1,550 boe/d.
9. Storm Resources
Storm Resources reported record production of 20,871 boe/d for the full year 2017, up from 18,654 boe/d in 2016.
The company, which is focused on Montney development at Umbach, says that its well performance continues to improve as length is increased.
Production averaged 17,936 boe/day in the fourth quarter of 2017, up 35 per cent from 13,320 boe/d in the fourth quarter of 2016.
10. Freehold Royalties
Unique on this list as a company that does not operate its own oil and gas wells, Freehold Royalties instead owns interest in wells operated by third parties. The company has interest in more than 42,000 royalty wells across Western Canada.
Freehold says it achieved record production of 12,350 boe/d in 2017, representing a one per cent increase over 2016, despite completing approximately 800 boe/d in non-core working interest dispositions.
