Concurrent Production of Oil and Gas Application

Concurrent production is the orderly production of an oil pool and its associated gas cap at the same time.

A concurrent production approval is necessary from Saskatchewan's Ministry of Energy and Resources in order to produce an oil pool and its associated gas cap. An oil well producing oil and significant amounts of gas may require concurrent production approval too, even if a gas-cap is not visible on the well logs.

No oil well shall produce gas in excess of a gas-oil ratio of 3,500 m3/m3 without approval. If a gas well test is performed and the gas-oil ratio is greater than 3,500 m3/m3, then the operator must immediately stop production. An operator must apply and receive approval from the Minister to produce the oil and gas concurrently.

Please note that there may be Minister's Orders with additional requirements for wells within designated spacing areas, pools, units, etc. If there is conflict between The Oil the Gas Conservation Regulations, 2012 to a Minister's Order regarding the requirements for concurrent production, the Minister's Order prevails.

All gas produced by concurrent production must be conserved.

To apply for concurrent production authorization, you must:

• Have an IRIS account and the appropriate permissions assigned by your IRIS Security Administrator
• Refer to the Directive PNG009: Public Notice Requirements to determine if a public notice package is required.
• Demonstrate that gas production either has a minimal impact on the ultimate oil recovery of the pool, or that oil production is unavoidable without the gas production.

Complete the following steps for each well you are seeking authorization for concurrent production:

1. Ensure you meet all eligibility requirements.
2. Compile the applicable supporting documentation:
   • The location of the well proposed for concurrent production from the reservoir.
   • A general discussion of the reservoir geology, that makes reference to:
     • A geological cross-section of the pool highlighting the proposed well, producing horizon, gas/oil and oil/water contacts, perforations;
     • A contour map of the top of the producing horizon; and
     • A gas/oil net-pay map of the producing horizon, indicating the reservoir boundary and an estimate of reserves-in-place.
   • A production history for the proposed well, including:
     • Present production rates or tests;
     • Drill stem tests indicating attempts at oil production;
     • Any offsetting wells within the reservoir;
     • Production tests;
     • Gas deliverability tests; and
     • Pressure tests that may be pertinent to the application.
   • The proposed method of gas utilization (i.e. lease fuel, sales, etc). Flaring or venting of gas is not allowed.
   • A map indicating mineral lessors and lessees for both the proposed well and offsetting sections.
   • If needed, any additional geological, geophysical or other data which supports the application (i.e. porosity, permeability, oil gravity, seismic mapping, etc.).
   • Seismic Data and Report (confidential).
   • Public Notice Package/Consents.
3. Log in to IRIS and complete the appropriate application process for authorization and attach the required documents as one file. The Public Notice Packages/Consents may be attached as separate files. Seismic Data and Report can be attached confidentially.
4. The applicant will be notified through IRIS whether the application for authorization is approved or denied.

IRIS Login

Once an authorization is issued, all gas production from the well must be conserved. If the infrastructure to conserve the gas is not in place at the time of approval, the well must be shut-in. Production can resume when the well is able to conserve all gas produced.