Oil and Gas – Update
On June 2, 2021, the AER issued Bulletin 2021-21 seeking feedback on a new edition of Directive 040: Pressure and Deliverability Testing Oil and Gas Wells. The proposed new edition includes changes to modernize Directive 040 by removing unnecessary oil and gas well test requirements and updating well test guidance to align it with today’s well testing practices. The key changes the AER sought feedback on were the following:
Modernized and updated guidance for minifrac tests, also known as diagnostic fracture injection tests, pressure gauge information, and drill stem tests.
Increased the exemption eligibility criteria for the initial pressure test requirements on oil, gas, and step-out wells.
Rescission of the requirement to conduct an absolute open flow deliverability test on new gas wells.
Rescission of the requirement to conduct annual pressure tests for oil and gas pools under primary production.
The deadline for submitting feedback was set as July 4, 2021.