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Alberta announces details of new royalty rates

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21 April 2016

Alberta announces details of new royalty rates

Report summary

On 21 April 2016, the Alberta government detailed the specific coefficients utilised in the calculation of the Drilling and Completion Cost Allowance, referred to as C-Star (C*) as well as the post-payout royalty rates. This inform details how the C-Star equation is calculated for 33 type wells in our western Canada Alberta coverage and also charts the oil and gas royalty rates once the payout threshold is reached. This ends the initial calibration period following the announcement of the Modernized Royalty Framework in January 2016. More details are forthcoming on items like conventional wells drilled within the oil sands boundaries, enhanced hydrocarbon recovery, and high-risk experimental wells. Wood Mackenzie will publish a follow-up insight with sub-play level analysis on the impacts of the modernised royalties across a wide variety of Alberta's oil and gas opportunities.

Table of contents

  • Alberta announces details of new royalty rates

Tables and charts

This report includes 1 images and tables including:

  • Post-payout oil and natural gas royalty rates

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    Alberta announces details of new royalty rates

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