Canada’s well licence count increased 28 per cent in the first half of 2022 compared to a year ago, as governments across the country approved 2,914 new wells versus 2,281 in the first six months of last year.

There were 674 wells licensed last month — up from 528 in June 2021 — and the highest monthly count to date for 2022.

Provincial counts

The permit count in Alberta for the January-to-June period rose 50 per cent to 2,014 from 1,342 well authorizations in the first half of 2021.

In British Columbia, no new wells were permitted in the first half of the year. June marks the eleventh month in a row without any new well approvals. The province continues to work with the Blueberry River First Nations on ways to improve and modernize provincial processes that recognize and respect their treaty rights.

A year ago, B.C. approved 278 new wells to the end of June.

Saskatchewan authorized 803 permits during the first half of 2022 compared to 594 in the year-prior period (up 35 per cent).

In Manitoba, 94 new wells were authorized compared to 60 in the first half of 2021.

Western Canadian producers licensed 2,062 wells with an oil or bitumen target during the half, an increase from 1,452 such permits in the first half of 2021 (up 42 per cent). A total of 528 gas wells were permitted during the half compared to 637 last year (down 17 per cent).

Excluding experimental wells, 93 per cent of the wells licensed during the first half of 2022 were for horizontal wells, up from 90 per cent last year. Operators licensed 2,685 horizontal wells during the first half of the year compared to 2,037 a year ago.

This year’s six-month licence count includes 23 oilsands evaluation wells, up from only six such permits to the end of June last year. There was only one oilsands evaluation well licensed in Q2.

Top licensees

Canadian Natural Resources Limited was the top licensee of new wells through the first six months of 2022.

The company licensed 244 wells in the first half of the year, including experimental wells, ahead of Cenovus Energy Inc. (178), Teine Energy Ltd. (142), Baytex Energy Corp. (116) and Crescent Point Energy Corp. (114).

For the month of June, Deltastream Energy Corporation was the leading licensee, with 77 new wells authorized.

June stats

Alberta licensed 452 wells in June, an increase from 330 permits in the year-prior period, while Saskatchewan authorized 182 wells last month compared with 140 in the year-prior period.

B.C. approved zero permits during the month versus 42 wells licensed in June 2021.

Manitoba’s June permit count rose to 40 from last year’s 16.