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Image: Joey Podlubny/JWN Canadian Natural Resources significantly increased its light oil drilling activity in the third quarter as it moved spending away from lower-return primary heavy oil production. The company began reducing investment in primary heavy crude in the second quarter. In Q3 it reduced heavy oil production by 10,000 to 15,000 bbls/d and plans to further reduce this up to 55,000 bbls/d in Q4. Meanwhile, the company drilled 27 net light crude wells in the third quarter, which is 19 more than its original plan, or a 237 percent increase. In Southeast Saskatchewan the company drilled nine net light crude oil wells in Q3/2018, with some wells on production late in the quarter and the remaining wells expected to come on production in Q4. “These light crude oil wells were drilled as a result of the strategic decision to shift capital to light crude oil and were not originally budgeted,” Canadian Natural said. “Production from these Saskatchewan wells is less impacted by the apportionment issues and price differentials experienced in Alberta.” In the Montney play near Grande Prairie, Canadian Natural said production remained strong at approximately 500 bbls/d per well from wells drilled earlier in 2018. “With this […]
