Basel Belly River Shale Revival Heralds New Era of Oil Drilling in Canada

Canada's Basel Belly River shale formation is experiencing a resurgence in oil drilling activity. Obsidian Energy Ltd. and Yangarra Resources Corp. are leading the charge, fracking into the sandstone layers to extract oil.

The area southwest of Edmonton, known as Willesden Green, has seen 15 drilling licenses granted for the first half of this year alone, a 14-year high according to Alberta Energy Regulator data.

Obsidian recently acquired 35 sections of land in the field from Highwood Asset Management Ltd. for C$105 million (about $75 million) in cash, which included the equivalent of about 2,500 bopd of hydrocarbon production, roughly 9% of the company's total output.

The push to drill for oil is part of a broader trend in Western Canada, where companies are targeting liquid-rich areas of shale formations including Montney and Duvernay after years of depressed gas prices.