Doig's Digest

Doig's Digest

July 26, 2005 08:00 ET

Doig's Digest Releases Thirteenth Annual Edition of Canadian Energy Ventures Abroad

CALGARY, ALBERTA--(CCNMatthews - July 26, 2005) -

CANADIAN OIL COMPANIES INCREASE INTERNATIONAL PRODUCTION IN 2004.

Year 2004 saw the international production levels of Canadian oil and natural gas companies increase. They recorded 10 percent higher production levels, on a crude oil equivalent basis, than those recorded in 2003. Crude oil and natural gas liquids increased two percent while natural gas production was up 40 percent. The year was also a period of transition for many companies that had missed the exploration boat with their earlier choices.

The Thirteenth Annual Doig's Digest Report, CANADIAN ENERGY VENTURES ABROAD, also revealed that in 2004:

- Seventy-five Canadian exploration and production companies had land holdings in 69 foreign countries;

- Forty-two Canadian exploration and development companies produced 905,605 barrels per day of crude oil, condensate and natural gas liquids in 31 counties worldwide - an increase of 16,220 barrels per day or 1.8 percent more than 2003 Canadian international production levels of 889,385 barrels per day;

- Twenty-six Canadian exploration and development companies produced 1,935.5 million cubic feet per day of natural gas in 18 countries worldwide - an increase of 550.0 million cubic feet per day or 39.7 percent more than 2003 Canadian international production levels of 1,385.5 million cubic feet per day;

For comparison purposes, in 1993 Canadian companies recorded international crude oil and liquids production of 135,890 barrels per day and natural gas production of 328.0 million cubic feet per day.

Commenting on the sector's growth, Ian M. Doig, publisher of Doig's Digest and the CEVA Report, said that "Last year, companies recorded international crude oil and natural gas liquids production equal to 21 percent of that produced in Canada, spent 24 percent of their capital expenditures outside of Canada, and were the catalyst for over 15 percent of Alberta's petroleum workforce now working on international production projects and selling Canadian oil and gas supplies." Internationally consulted for his probing assessment of Canadian energy developments, Mr. Doig is a well-known figure in the Canadian oil patch.

Internationally, the 2004 highlights were revealed in the actions of EnCana Corporation, Nexen, Inc., Niko Resources Ltd., Petro-Canada and Talisman Energy Inc. EnCana, North America's largest natural gas producer, purchased additional production in the U.S. Rocky Mountain area, sold its United Kingdom operations and announced that its assets in Ecuador were for sale. Nexen encountered success in the East al Hajr block in Yemen, took a position in the U.K. sector of the North Sea, drilled successful wells on block OPL-222 offshore Nigeria and brought on production two deepwater fields in the Gulf of Mexico.

Niko Resources continued its success on the Indian sub-continent. The Government of India approved development plans for the deepwater Dhirubhai gas field with production expected to commence in 2008. In late 2004, the Company commenced its first natural gas production in Bangladesh. Petro-Canada took a major position in an unconventional natural gas play in the U.S. Rocky Mountain area, purchased an interest in a large crude oil development in the U.K. North Sea and is investigating a joint project with Gazprom to ship liquefied natural gas to North American markets by 2009. Talisman Energy expanded its position in the Norwegian North Sea, significantly increased its natural gas production in Southeast Asia, signed a major natural gas sales contract in Indonesia and completed development of the Greater Angostura offshore project in Trinidad and Tobago with first oil production commencing in early 2005.

The five Canadian companies with the largest international crude oil and liquids production in 2004 were: Talisman Energy, Petro-Canada, PetroKazakhstan Inc., Nexen and EnCana. The five countries/areas recording the largest volumes of Canadian-produced crude oil and liquids were: U.K. North Sea, Kazakhstan, Yemen, Syria and Ecuador.

The five Canadian companies with the largest international natural gas production in 2004 were: EnCana, Talisman Energy, Petro-Canada, Nexen and Canadian Natural Resources Limited. The five countries/areas recording the largest volumes of Canadian-produced natural gas were: the United States, U.K. North Sea, Indonesia, Malaysia/Vietnam and Dutch North Sea.

The 185-page CEVA Report provides key details regarding 126 Canadian exploration and production, pipeline, drilling and service companies that have had operations, made sales and held land in 125 countries around the world in 2004. In addition to identifying which Canadian companies are looking abroad for growth, the Report analyzes their international exploration and production activities and provides addresses, key contact names, telephone and fax numbers, e-mail addresses and web page information.

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