Google Translate Disclaimer

A number of pages on the Government of Saskatchewan`s web site have been professionally translated in French. These translations are identified by a yellow text box that resembles the link below and can be found in the right hand rail of the page. The home page for French-language content on this site can be found here:

Renseignements en Français

Where an official translation is not available, Google™ Translate can be used. Google™ Translate is a free online language translation service that can translate text and web pages into different languages. Translations are made available to increase access to Government of Saskatchewan content for populations whose first language is not English.

The results of software-based translation do not approach the fluency of a native speaker or possess the skill of a professional translator. The translation should not be considered exact, and may include incorrect or offensive language Government of Saskatchewan does not warrant the accuracy, reliability or timeliness of any information translated by this system. Some files or items cannot be translated, including graphs, photos, and other file formats such as portable document formats (PDFs).

Any person or entities that rely on information obtained from the system does so at his or her own risk. Government of Saskatchewan is not responsible for any damage or issues that may possibly result from using translated website content. If you have any questions about Google™ Translate, please visit: Google™ Translate FAQs.

Apply for Concurrent Production of Oil and Gas

An operator can apply to produce a high volume of natural gas concurrently with their oil production in Saskatchewan as outlined in Section 49 of The Oil and Gas Conservation Regulations, 2012.

Top

1. Guidance

Concurrent production is the orderly production of an oil pool and its associated gas cap at the same time. 

A concurrent production approval is necessary from Saskatchewan's Ministry of the Economy in order to produce an oil pool and its associated gas cap. An oil well producing oil and significant amounts of gas may require concurrent production approval too, even if a gas-cap is not visible on the well logs.  

No oil well shall produce gas in excess of a gas-oil ratio of 3,500 m3/m3 without approval. If a gas well test is performed and the gas-oil ratio is greater than 3,500 m3/m3, then the operator must immediately stop production.  An operator must apply and receive approval from the Minister to produce the oil and gas concurrently.

Please note that there may be Minister's Orders with additional requirements for wells within designated spacing areas, pools, units, etc.  If there is conflict between The Oil the Gas Conservation Regulations, 2012 to a Minister's Order regarding the requirements for concurrent production, the Minister's Order prevails.

All gas produced by concurrent production must be conserved.   

Top

2. Eligibility

To apply for concurrent production authorization, you must:

  • Have an IRIS account and the appropriate permissions assigned by your IRIS Security Administrator
  • Refer to Guideline PNG021: Determining Draining Units and Target Areas to determine the gas drainage unit, and confirm the area is held by a single lease.
    • If the area is held by more than one working or mineral interest owner, one of the following is required:
      • A pooling agreement for the gas drainage unit, and signed consent letters from the mineral interest owners; or
      • If the producing gas-oil ratio has been consistently less than 3,500 m3/m3, the applicant must confirm the future gas-oil ratio will not exceed 3,500 m3/m3.
  • Refer to the Directive PNG009: Public Notice Requirements to determine if a public notice package is required.
  • Demonstrate that gas production either has a minimal impact on the ultimate oil recovery of the pool, or that oil production is unavoidable without the gas production.
Top

3. How To Apply

Complete the following steps for each well you are seeking authorization for concurrent production:

  1. Ensure you meet all eligibility requirements.
  2. Compile the applicable supporting documentation:
    • The location of the well proposed for concurrent production from the reservoir.
    • A general discussion of the reservoir geology, that makes reference to:
      • A geological cross-section of the pool highlighting the proposed well, producing horizon, gas/oil and oil/water contacts, perforations;
      • A contour map of the top of the producing horizon; and
      • A gas/oil net-pay map of the producing horizon, indicating the reservoir boundary and an estimate of reserves-in-place.
    • A production history for the proposed well, including:
      • Present production rates or tests;
      • Drill stem tests indicating attempts at oil production;
      • Any offsetting wells within the reservoir;
      • Production tests;
      • Gas deliverability tests; and
      • Pressure tests that may be pertinent to the application.
    • The proposed method of gas utilization (i.e. lease fuel, sales, etc).  Flaring or venting of gas is not allowed.
    • A map indicating mineral lessors and lessees for both the proposed well and offsetting sections.
    • If needed, any additional geological, geophysical or other data which supports the application (i.e. porosity, permeability, oil gravity, seismic mapping, etc.).
    • Seismic Data and Report (confidential).
    • Public Notice Package/Consents.
  3. Log in to IRIS and complete the appropriate application process for authorization and attach the required documents as one file.  The Public Notice Packages/Consents may be attached as separate files.  Seismic Data and Report can be attached confidentially.
  4. The applicant will be notified through IRIS whether the application for authorization is approved or denied.
Top

4. Apply

Top

5. Further Information

Once an authorization is issued, all gas production from the well must be conserved.  If the infrastructure to conserve the gas is not in place at the time of approval, the well must be shut-in. Production can resume when the well is able to conserve all gas produced.

We need your feedback to improve saskatchewan.ca. Help us improve