Precision says wildfires in Alberta and B.C. have had a modest impact on operations
FILE - In this photo provided by the Government of Alberta Fire Service, a wildfire burns a section of forest in the Grande Prairie district of Alberta, Canada, Saturday, May 6, 2023. (Government of Alberta Fire Service/The Canadian Press via AP,File)
Precision Drilling Corp. says the wildfires in Alberta and B.C. have had a modest impact on its operations and it expects second-quarter drilling activity to average about 42 rigs in the region, an increase of 14 per cent compared with a year earlier.
Wildfires in Alberta and B.C. have forced oil and gas companies to shut in production due to the dangers facing their operations caused by the hot and dry conditions.
Precision says it has 46 rigs active in Canada right now, but expects to have more than 60 active rigs by the end of the month as it emerges from the lows of the spring breakup season.
In the U.S., the contract drilling company says its active rig count currently stands at 50, but cautioned that activity may further soften in the coming weeks.
Precision says its U.S. drilling activity in the second quarter this year is expected to average about 50 rigs compared with an average active rig count of 55 in the second quarter of 2022.
The company says it continues to sign new contracts, with multiple rigs starting in the second half of the year.
This report by The Canadian Press was first published June 1, 2023.
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