If you operate oil wells in Saskatchewan, drilling costs can limit how much new production you bring online. The Saskatchewan Multi-Lateral Oil Well Program (MLWP) helps reduce that risk by offering royalty relief for qualifying multi-lateral wells. This article explains MLWP eligibility requirements, what counts as a qualifying well, and how to avoid common application issues.
The Multi-Lateral Oil Well Program (MLWP) is a provincial royalty incentive, not a cash grant. It reduces Crown royalty payable on eligible oil production from approved multi-lateral wells drilled in Saskatchewan. The goal is to encourage more efficient reservoir development and increase recovery from existing fields.
Because this program works through royalty relief, the financial benefit shows up over time as lower royalties, rather than as an upfront payment.
To qualify for the MLWP, your project must meet technical, operational, and regulatory criteria set by the Government of Saskatchewan.
The program is designed for:
There is no restriction based on company size, but applicants must be legally authorized to drill and produce oil in the province.
Your well must meet the definition of a multi-lateral oil well, which generally includes:
Conventional single-leg wells do not qualify. The program is focused on wells that maximize reservoir contact through multiple laterals.
To be eligible:
Freehold-only production is typically not eligible for MLWP benefits.
Timing matters. In most cases:
Always confirm application timing before drilling begins to avoid losing eligibility.
The MLWP provides:
This is not taxable grant income, but reduced royalties can still affect your overall tax planning.
Tools like GrantHub’s eligibility matcher can help you quickly confirm whether royalty-based programs like MLWP apply to your wells and whether other Saskatchewan incentives may stack with it.
Assuming MLWP is a cash grant
This program reduces royalties. There is no upfront funding.
Applying after drilling is complete
Missing timing requirements is one of the most common reasons for rejection.
Misclassifying a well as multi-lateral
Not all branched or re-entry wells meet the program’s definition.
Overlooking stacking rules
Some Saskatchewan oil incentives can be combined, but not all. Always verify compatibility.
Q: Is the Saskatchewan Multi-Lateral Oil Well Program a grant?
No. The MLWP is a royalty incentive, not a cash grant. The benefit comes through reduced Crown royalties on qualifying production.
Q: Who can apply for the MLWP?
Oil and gas producers operating in Saskatchewan who hold eligible Crown rights and drill qualifying multi-lateral wells can apply.
Q: Does the MLWP reduce Crown royalties?
Yes. Approved wells receive royalty relief based on program rules set by the province.
Q: Is there a deadline to apply?
Applications are tied to drilling and regulatory approval timelines. Late applications may not be accepted.
Q: Can MLWP be combined with other Saskatchewan oil incentives?
In some cases, yes. Stacking depends on the specific program rules and well characteristics.
After reviewing eligibility, GrantHub tracks active oil and gas incentive programs across Canada — including royalty and tax programs — to help you see which ones match your business profile.
You may also find these helpful:
The Saskatchewan Multi-Lateral Oil Well Program eligibility requirements are technical, and small missteps can reduce or eliminate your benefit. Before drilling, confirm your well design, timing, and stacking options. GrantHub helps Saskatchewan energy producers track royalty incentives and related programs so you can plan projects with clearer cost certainty.
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