Also Kelt Exploration Ltd (C:KEL) In the News
The Financial Post reports in its Wednesday edition that drilling rigs are hot commodities once again across the Montney shale formation in Northern British Columbia and Alberta, and companies like Grimes Well Servicing are having a hard time keeping up with demand. A Bloomberg dispatch to the Post says that is because the Montney, unlike many parts of Canada’s oil and gas region, is seeing a surge of investment despite the continuing energy slump. During the first four months of 2017, the number of wells drilled jumped 80 per cent from a year earlier to 277. It is the most for the period since 2014. Grimes started noticing a pickup in orders back in November and December, and demand has not let up. “By January, it was getting pretty crazy,” said Grimes’s Derek Mackey. “Some people called saying, Can we get a rig in a couple days?” The Montney was dubbed the “Permian of the North” by Blackbird Energy because it has the same layered, stratified geology as the Texas shale formation that has led a resurgence in U.S. oil production. However, unlike the Permian, which yields mostly crude, the Montney is rich in gas and associated liquids such as condensate. Kelt Exploration planning at least three new wells.