Saskatoon Mortgage Broker shares article – Saskatchewan a hot market as oilpatch recovers

A string of deals in the oilpatch suggests some investors are bullish on Saskatchewan and bearish on Alberta.

Several different companies have purchased assets in Saskatchewan recently as both Penn West and Husky sold off properties in the province. The sale prices were higher than analysts expected.

The acquisitions are encouraging for drillers and other members of the oilfield service sector that work in the oilfields of Saskatchewan.

“Some of those transactions are very positive for us, as we are doing business with the companies that are acquiring a larger position there,” said Shane Walper, founder and CEO of Predator Drilling. One such firm is Teine Energy, which recently bought oil assets from Penn West for $975 million.

Predator Drilling is based in Red Deer, Alta., but these days it’s finding work elsewhere in the country. Lately, it has had rigs operating in Saskatchewan and Ontario and it will soon be deploying in Manitoba and B.C.

“None are scheduled to be going out in Alberta. That tells some of the story,” said Walper.

He suggests investor confidence is not as strong in Alberta, except for the oilsands where active players are looking at growing production.

Light oil is attractive

Saskatchewan has not been immune to the oil downturn and subsequent layoffs over the past two years, but investments are picking up.

Husky recently opened a new thermal plant in the province, while Raging River Exploration announced it would invest $175 million this year in Saskatchewan and $3 billion over the next decade in drilling and oil recovery.

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