Anderson Exploration increases capital budget

Anderson Exploration Ltd., Calgary, has increased its capital budget by 18% to $774 million (Can.) for its 2001 fiscal year, which begins Oct. 1. The company says it will drill more than 800 wells in 2001, the largest annual total in its history. It expects to complete about 550 wells this year.


CALGARY�Anderson Exploration Ltd., Calgary, has increased its capital budget by 18% to $774 million (Can.) for its 2001 fiscal year, which begins Oct. 1.

The company says it will drill more than 800 wells in 2001, the largest annual total in its history. It expects to complete about 550 wells this year.

Anderson will focus on deep natural gas projects in northern Alberta and northeast British Columbia and on projects in the frontier regions of the Mackenzie Delta and Beaufort Sea, where it has recently acquired substantial acreage (OGJ Online, Aug. 16, 2000). It also plans oil development in central Alberta and the heavy oil region on the Alberta-Saskatchewan border.

Anderson is the latest in a list of senior Canadian producers, including Talisman Energy Inc., PanCanadian Petroleum Ltd., Alberta Energy Co. Ltd., and Canadian Occidental Petroleum Ltd. to increase their 2000 capital budgets by a combined $998 million.

Strong cash flow and commodity prices are prompting companies to gear up exploration and development plans for the upcoming winter drilling season, when activity traditionally increases.

The Canadian Association of Oilwell Drilling Contractors expects a record 16,566 wells will be completed in 2000, and forecasts higher drilling activity in 2001.

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