Oil and gas exploration firm Northern Petroleum has started up drilling operations in the Keg River formation in Canada.
The firm has been granted licences to start the proof of concept programme for the redevelopment opportunity in north-west Alberta.
The drilling programme will involve re-entry of an exiting well, a new well twinning an existing well into a previously produced reef and a new well into an undrilled reef.
Last year, the company acquired leases covering more than 9,300 acres of land from Alberta Crown land sales.
The majority of the Keg River production wells were drilled in the late 1960s and 1970s, with oil recovery rates or around 20% to date.
However, in the 80s and 90s most of the wells were shut-in due to increasing water cut and lack of capital investment.
“Through close co-operation with the Albertan authorities, the company is now receiving approvals for the well licence applications and it is great that field operations have begun,” said chief executive Keith Bush.
“I am looking forward to testing our sub-surface work through the well programme.”