The Government of Saskatchewan launched a new program called the Low Productivity and Reactivation Oil Well Program (LPRP) in an effort to boost oil production and revenue to the province.

Reactivating eligible wells will promote industry investment.

Energy and Resources Minister Colleen Young says the 4-year program will see the final year projected to add 30,000 barrels per day of oil production and will benefit the province.

Young says, “It’s another $21 million if we can get another 30,000 barrels of oil out of the ground in the next four years. That’s more revenue for the province to invest in schools, hospitals, healthcare facilities and roads.”

Young says the program would encourage companies to invest in existing assets and increase oil production in our province and add more jobs.   The LPRP promotes industry investment through a new royalty structure for eligible wells.

The program will contribute to Saskatchewan’s Growth Plan of increasing oil production to 600,000 barrels per day. The LPRP can extend the life of wells that have been drilled before and will allow access to oil that would otherwise have been left in place.