We Are In The Papers Tomorrow
Cassandra Kyle, TheStarPhoenix.com
Published: Wednesday, June 11, 2008
Preeceville is the latest Saskatchewan community to be connected with crude after a junior oil and gas company announced Wednesday it made a discovery in the area.
Nordic Oil and Gas Ltd. of Winnipeg, Man. discovered oil in two formations over the weekend at its Preeceville site, roughly 350 kilometres east of Saskatoon. Company chairman and CEO Donald Benson explained in a news release that testing is now needed to determine if the site will be economically viable.
"An oil discovery is what we were looking for, and now the all-important thing to determine is the production capability of the well," Benson stated.
The discovery comes in an area of the province not known for producing oil, said Roy Schneider, spokesman for Saskatchewan's Ministry of Energy and Resources.
He said the province would be pleased to see an addition to its overall oil supply.
"I think it tells you that possibly this province has more potential than we realize in terms of better defining what the resource base is," he said.
If the discovery leads to production the entire area will benefit, said Garth Harris, mayor of Preeceville, which has a population of 1,050. While challenges come hand-in-hand with economic growth, Harris said the region is enthused about the potential of oil in the area.
"With the oil stuff, it's exciting when you see the guys coming through town and when they're downtown on coffee row talking about stuff. So there's a little bit of excitement and enthusiasm," he said.
In an earlier interview with the Saskatchewan News Network, Benson said Nordic has been in the Preeceville area since 2001. The company discovered "oil seeps" in the area late last year similar to those that led to the discovery of oil at Turner Valley, Alta. in 1914.
ckyle@sp.canwest.com
© The StarPhoenix 2008