Oil Potential In Northwest Draws More Interest

Oil Potential In Northwest Draws More Interest

Tuesday, June 13, 2006 at 13:46

An official with the provincial government says a growing number of oil companies are showing interest in northwestern Saskatchewan’s oil reserves.

Ed Dansuk of the government’s Petroleum and Lands branch says, to date, only one company (Oilsands Quest) has actually been granted an exploration permit in a region north of La Loche — but others are beginning to ask questions.

Dansuk says his department doesn’t plan to grant any more exploration permits until a review of regulations is complete.

He says they have mailed out letters to oil companies outlining some of the changes the government would like to see made to the current exploration process.

Among them is a hike in fees for how much companies are charged per acre to look around.

Dansuk says the government is hoping oil companies will return the mailout with an indication of what they want to see happen.

He expects the review to be completed in 6 to 12 months.