Cenovus Energy plans to increase production by launching a new drilling programme in Southern Alberta targeting tight gas.

The integrated Canadian major has already identified about 700 drilling locations on its Palliser block and will spend C$160 million (US$122 million) in 2017 to drill about 50 horizontal development wells and 60 stratigraphic wells.

New production from Palliser in the short term could help offset conventional production declines reported for the full year of 2016.