Weekly OFS Newsletter
News Items Ending April 30, 2018
- Saskatchewan based private equity firm PIC Investment Group announced the creation of CanGas Propane Inc. as a result of its acquisition of 13 propane distribution branches divested from the Superior Propane Inc. acquisition of Canwest Propane Ltd. from Gibson Energy Inc. (TSX:GEI) in Sept 2017. CanGas will be operating throughout Western Canada, serving residential, commercial, oil and gas, mining and industrial customers.
- Total Energy Services Inc. (TSX:TOT) increased its existing revolving credit facilities by $65 million to $290 million. The credit facility has also been extended to June 2021. Total may elect to increase the amount available under the facility at any time during the term by up to $75 million or a maximum of $365 million, subject to certain terms and conditions including the agreement of existing lenders to increase their commitments.
- The Petroleum Services Association of Canada (PSAC) lowered its forecast for the number of wells drilled across Canada for 2018 to 7,400 wells, a decline of 500 or six percent from its original forecast of 7,900 in October 2017. PSAC has based its updated forecast on an average natural gas (AECO) price of $1.75/mcf, crude oil price (WTI) of USD $61.45/bbl, and a CAD/USD exchange rate average of $0.79.
- The Saskatchewan government introduced Bill 126, The Energy Export Act to restrict provincial energy exports. The bill will create legislative framework necessary to optimize the value of Saskatchewan’s energy products. It establishes a permitting process for individuals or corporations seeking to export such products outside the province. The introduction of the bill is in response to the “inaction by the federal government to assert its jurisdictional authority to ensure the Trans Mountain expansion project proceeds”.
- The Alberta government is providing more than $2.3 billion in assistance to the provincial energy sector, including a five-year holiday on carbon levy costs, as it introduces regulations to reduce methane gas emissions. This is in conjunction with the Alberta Energy Regulator (AER)’s regulations designed to reduce methane gas emissions from upstream operations by 45% relative to 2014 levels by 2025. The final regulations are expected to be released this fall, with requirements for fugitive emissions screenings and surveys to be effective Jan 1, 2020.