Paul Martin's Business Update - October 11th

The latest sale of drilling rights for oil in this province has the government pointing to a shift in the approach being taken by the industry.

The fifth sale of the year brought in just over $9 million. That is a small number when compared to what we were seeing a few years ago and it brings the year’s total to $53 million. However, according to the Energy Minister, this is in line with what Alberta and BC are seeing.

In effect, the industry is directing its capital from land acquisition to investing in actually developing the properties already in hand. In other words, less land acquisition and more drilling after years of assembling blocks of land.

Nonetheless, there is still some activity and once again the southeast is drawing the bulk of the attention accounting for more than half the overall spend. And there was no mention this time round of activity in non-traditional areas such as the Hudson Bay region which was the headline grabber in the last sale as the industry expands its footprint over a larger part of the province.

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