PETROLEUM-EXPLORATION AND DEVELOPMENT OPPORTUNITIES IN MANITOBA

The productive areas of Manitoba are located along the northeastern flank of the Williston basin. Rocks of Paleozoic, Mesozoic and Cenozoic age form a basinward thickening wedge of sedimentary strata that reach a total thickness of 2300 m in the southwest corner of the province. To date, oil production in Manitoba is restricted to the sandstones of the Jurassic Amaranth Formation, the carbonates of the Mississippian Lodgepole and Mission Canyon formations and the sandstones of the Mississippian Bakken Formation. The deeper formations of the Devonian and Ordovician age - the Birdbear, Duperow, Dawson Bay, Winnipegosis, Red River and Winnipeg formations offer oil and gas potential but remain largely undrilled. Potential reservoir sands also exist above the Jurassic Amaranth Formation. This paper presents a brief description of the geology and reservoir characteristics of producing horizons in Manitoba. It describes Manitoba's Crown land tenure system of leases and exploration reservations. Also presented is an overview of Manitoba's petroleum royalty and tax structure and incentive programs. This paper outlines exploration and development opportunities in Manitoba. When examining any petroleum exploration and development opportunities, it is essential that consideration be given to the various factors that influence the attractiveness of such opportunities. The factors that create a favourable investment climate in Manitoba and some economic examples will be discussed.