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Strategic Oil and Gas stops production at Cameron Hills field

The Calgary-based company says production at the field, located south of Kakisa, N.W.T., is 'not economic at current commodity prices.'

The owner of one of only two producing oil fields in the N.W.T. says it's stopping production at the field due to low oil prices.

Calgary-based Strategic Oil and Gas announced yesterday it's halting operations at the Cameron Hills production field, located south of Kakisa and just north of the N.W.T./Alberta border. The field also produces natural gas. 

The company says it's part of a larger plan to reduce operations "in response to the recent downturn in commodity prices," adding that production at Cameron Hills is "not economic at current commodity prices."

The price of crude oil has decreased by 52 per cent since June. 

Declining production 

Production at Cameron Hills has been declining for years. In 2013, the field produced 16,000 cubic metres of oil, compared to 31,000 cubic metres three years earlier.

Cameron Hills produces just a fraction of the oil produced at the territory's last surviving oil field, Imperial Oil's Norman Wells field. That field, which is also in decline, produced 638,000 cubic metres of oil  in 2013. 

Strategic acquired Cameron Hills from Paramount Resources in 2013.

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