Saskatchewan has introduced a new multi-lateral well drilling program with what the government describes as a competitive royalty regime to encourage the use of multi-lateral horizontal oil wells.

Multi-lateral drilling configurations allow a single well to access more of the oil reservoir. The Ministry of Energy and Resources estimates between 100 to 200 additional wells will be drilled in the province per year as a result of this program.

In a news release Minister responsible Jim Reiter said the technique will put more rigs and workers in the field and support the goal of increasing oil production by 25 per cent to 600,000 barrels per day. The province is the second-largest oil producing jurisdiction in Canada and supports over 26,000 jobs.

Companies with investment in the Lloydminster region welcome the program. Lycos Energy says multi-lateral drilling is the cornerstone of its business and the President and CEO ave Burton said the program will give a competitive edge to Saskatchewan resulting in our Company reallocating funds to the province.