Heavy oil plays dominated Canadian drilling activity in the first half of 2025, with operators increasingly deploying open-hole multilateral wells across formations beyond the Clearwater.

The Clearwater formation remained a top target with 1,142 lateral legs drilled, but combined activity in the Waseca and Sparky members of the Mannville Group surpassed it, totaling 1,218 lateral legs. The Blue Sky formation also saw significant multilateral drilling, with 459 lateral legs completed. Obsidian Energy Ltd. plans to invest $62 million in the Peace River oil sands in H2 2025, targeting both Blue Sky and Clearwater formations.

The Montney formation remained the top unconventional target, with Ovintiv Inc. leading in productivity, drilling eight of the top ten wells based on 90-day IP rates. Ovintiv now holds 370,000 net acres in the Montney and plans to invest $575–$625 million in the play this year, targeting 75–85 net wells.

Canadian Natural Resources Limited was the top driller in H1 2025, increasing its heavy oil multilateral program by 50 per cent to 182 wells, and beginning development on Kaybob Duvernay assets acquired from Chevron Canada.

（Release date: 10 September 2025 Source: DOB Energy）