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ARTICLE · 27 MARCH 2008

Drilling An Offset Well – Is It A Title Preserving Well ?

Blake, Cassels & Graydon LLP
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The recent Alberta Court of Appeal case, Amethyst Petroleums Ltd. v. Primrose Drilling Ventures Ltd., involved a dispute over the right to oil and gas on lands jointly leased by the respondents, Amethyst Petroleums Ltd. and Hill Oil (1993) Limited, and the appellant Primrose Drilling Ventures Ltd.

CanadaEnergy and Natural Resources
Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Copyright 2008, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on on Energy -Oil & Gas - March 2008

The recent Alberta Court of Appeal case, Amethyst Petroleums Ltd. v. Primrose Drilling Ventures Ltd., involved a dispute over the right to oil and gas on lands jointly leased by the respondents, Amethyst Petroleums Ltd. and Hill Oil (1993) Limited, and the appellant Primrose Drilling Ventures Ltd. The lands were owned by Bearspaw Petroleum Ltd. (Bearspaw), and Primrose was the operator. Amethyst, Hill Oil and Primrose had previously drilled the 14-8 well on the lands. The right to oil and gas in this instance depended on whether a particular well was considered a "title preserving well" under the governing operating procedure, the 1990 CAPL Operating Procedure (the Operating Procedure). If the 2-8 well was a title preserving well, Primrose would be entitled to the

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