Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 6, 1990, Winnipeg, Manitoba Business Winnipeg free press january Page 14 Philip business editor Oil firms cautious despite higher prices by Mary Ann Fitzgerald Oil still cautious about where volatile Oil prices Are expect to keep their spending in Manitoba at about the same million level As last i would expect the activity level to be about the Robert do director of the provincial governments Petroleum pre the amount is less than one half the million the companies spent in 1985 when Oil prices peaked an average a barrel at the Well the current Price is about it averaged about a barrel in up from in 1988 the worst Price since the Early Dubreuil prediction is echoed by executives of some of the major new owner pleased with Mog Deal the Money losing Crow owned Manitoba Oil and Gas sold a year is doing its new owner its definitely profitable in the course of the first Robert president of the Manito abased Tundra Oil and Gas said in an interview this he said he could give no figures because Mog operations have been folded into those of the Pri Vatel owned were very pleased with the Way it has he its contributed a very significant part of our when Tundra bought the Crown company it was producing 200 barrels of Oil a the Mog property is now producing 300 Puchniak Manitoba taxpayers had pumped million into Mog in five before Gary Hilmons conservative government sold it to Tundra last january for As Tundra handed Back 000 hectares about 40 per cent of Man oils land holdings Worth an estimated to the provincial at the Tundra already had an interest in 20 of Man oils 50 Wells involved in the leaving it with 30 new some were abandoned and others were worked Over to enhance their Puchniak estimated Tundra spent about million on the Manoil properties in the last the former Crown corporation was set up by Howard Hawleys nip government in 1983 to stimulate exploration and development in Manitoba Oil Tundra was one of two formal bids the Filmon government received when it put Manoil on the auction producers in Manitoba Small Oil although they say prices have rebounded better than they had the Industry really has been quite because of uncertainty Over where prices Are Robert president of the Winnipeg based Tundra Oil and Gas anytime prices Are it tends to Breed uncertainty and when you have people Are hesitant to if companies Felt confident the Price would they would probably step up their drilling a bit from Puchniak completion costs As company executives the end of the Canadian exploration and development incentive program under which Ottawa paid As much As one third of the drilling and completion is a Factor in restricting its that much less the Industry has to Jack president of Omega hydrocarbons the Industry activity is driven by Oil depending on which expert you listen they May be going they May be going Down or they May be staying the Dubreuil said in an Hall agreed prices have bumped up in the last few but where it goes from who Oil production in Manitoba dropped to million barrels last year from million barrels in production peaked in 1986 at almost million we have seen a fairly Large number of Wells abandoned in the last two or three Dubreuil in there were producing Wells in the the 1989 figures Arent but the number is expected to be Down by 10 to 20 Wells should be viable the Peak year was 1987 when Wells were pumping most of the marginal Wells have already been abandoned and with somewhat improved the remaining Wells should be Dubreuil Chevron Canada the big Gest producer in the provinces Oil Field with 750 Wells will probably follow its Normal pattern of drilling about 10 Wells at a Cost of about million this the company area superintendent Lyle Martin son said from the company Abandons about 10 Wells keeping the number of producing Wells about it spends Between million and million annually operating its Manitoba which bought the Money losing Crow owned Manitoba Oil and Gas for million a year plans to spend about million this drilling 18 Wells three More than last weve always been relatively tace Ketu Audi u8 German engineering at its finest View it at Winnipeg Audi Dealership 305 Madison at Ness 1 Block from Polo Park we Are pleased to announce that Canada is now represented in Winnipeg by Canada Ransom Lawton financial to provide continuing service to current policy As Well As serving the financial planning needs of the idd i Ransom Lawton a Mancial planning services limited Contact James Clu Ransom Lawton financial planning services limited 305 10th floor Manitoba r3c 3j7 phone Jack Halls Omega spends million to million maintaining and operating about 400 Wells in taking our Cash flow and reinvesting Puchniak Tundra spends up to million annually operating its 112 Wells which produce about five per cent of the provinces were assuming prices this year will not be much different from last Puchniak Price has rebounded to a greater extent most people would have sex including despite the uncertainty Over Tundra int standing we Are going ahead and invest ing our Cash Puchniak Manitoba second largest pro which in 1988 suffered its first Ever plans to spend about million this year drilling half a dozen Hall positive Cash flow the increased prices in the past few weeks should provide More Cash flow and with that we will be doing he said from Cal the company spends million to million maintaining and operating about 400 Wells in Omega is recovering from the million loss in blaming world oversupply and Low Oil wrote Down the value of its assets by while the final figures Arent Hall said the company should have a positive Cash flow of 50 cents a share for 1989 and expects Only a slight loss in net earnings for the Enron Oil Canada of the top five producers in Manitoba is cautiously plan Ning drilling at about the same level As last a senior company official we believe the recent stability in Oil Price and its upward Bias has increased the Confidence he said from the company plans to Drill 12 to 20 Wells in Manitoba this concentrating on the Lowrick area of its developed Wells in the Waskada said the spokesman who asked not to be drilling basically is limited to Spring and we have to be careful of the he the Only two win Dows of time when we can Drill is in the Early Spring or after Enron has varying working inter ests in 75 Wells in the a private it Doest Dis close its new scope resources for the Sec Ond consecutive year has no drilling plans for its president Don Shepherd Oil even though we Are Happy with where they need to be higher for us to be Active he said from the company spends close to million a year on the 60 Manitoba Wells in which it has i Gold glitters again now in Winnipeg put your hot seller on wheels and watch the profits Roll Glove shop join our family of cart vendors and you too could become a big wheel on a Small Short term cos efficient lease brings Home the Ideal for a wide variety of uses in arts minimal capital outlay and instant customers Means immediate sales and Call Elliot Katz 9449711 Eaton place the Opportunity is now 204 9448207 securities Rock Market Doug Abra and Dave Hill wish to announce that effective january 1990 Sheila Beatty will be joining their firm As an the firm will continue to concentrate on litigation and advocacy and will consist of Doug Abra Dave Hill Regina Novek Steve Vincent Sherri Walsh Sheila Beatty Blair Kilyk Abra litigation counsel suite 680360 main Street Manitoba r3c 3z3 Telephone 204 9436740 fax 204 9433934 sports All the with Complete coverage and informed comment on National and International sporting Winnipeg free press Home delivery 9570550 ;