Saskatchewan Launches New Program to Boost Oil Production and Generate Investment

CANADA, May 13 - Released on May 13, 2025

The Government of Saskatchewan has launched the Low Productivity and Reactivation Oil Well Program (LPRP) to create new incremental oil production and revenue from low-producing or inactive wells. 

The LPRP promotes industry investment in low-producing or inactive horizontal oil wells through a new royalty structure for eligible wells. In the final year of the four-year LPRP program, it is projected to add 30,000 barrels per day of oil production and generate $21 million in additional royalty revenue for the province.

"Growing Saskatchewan's oil and gas industry is a priority for our government," Energy and Resources Minister Colleen Young said. "This new program will encourage companies to make new investments in existing assets and increase oil production in our province. With our abundant resources, competitive regulatory environment, and targeted incentives, Saskatchewan is one of the best places in the world to develop oil and gas projects."

The LPRP can extend the life of wells that have already been drilled and allow access to oil that would otherwise have been left in place. The incremental oil production generated through the program will contribute to reaching Saskatchewan's Growth Plan goal of increasing oil production to 600,000 barrels per day.

"Not only does the LPRP support the government's goal of increasing oil production, it has the added benefits of reducing inactive asset retirement obligations, improving environmental performance and enabling companies to convert liabilities into assets," Saturn Oil and Gas CEO John Jeffrey said. "Saturn recently completed a successful Frobisher re-entry and is excited to identify further candidates, as we believe the LPRP will spur increased production, activity and revenue for the province; reduce the inactive well count and create additional employment and investment opportunities. Ultimately, the new LPRP represents a win-win for all stakeholders."

Last year, the value of Saskatchewan oil and gas production reached $13.5 billion, with the sector employing more than 26,000 people. Saskatchewan is the second-largest oil producer in Canada and sixth largest onshore oil producer in North America.

For more details about LPRP, including information about how to apply for the program, visit: link.

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