Alberta Energy Regulator tries to stem tide of orphan wells
It just got harder to buy oil and gas assets in Alberta
By Tracy Johnson, CBC News Posted: Jun 21, 2016 5:48 PM MT Last Updated: Jun 26, 2016 11:23 AM MT
With little fanfare, the Alberta Energy Regulator has tightened up the rules for buying oil and gas assets.
From now on, a company looking to buy oil and gas wells in Alberta will need a liability management ratio (LMR) of 2.0 or higher. That means the value of a company’s producing wells must be twice that of the cost of abandoning and reclaiming the wells at the end of their life.