Athabasca’s Hangingstone SAGD project starts oil production

Athabasca Oil Corp. said the Hangingstone 1 steam-assisted gravity drainage (SAGD) oil sands project in Alberta started oil production in July with six well pairs converted to production (OGJ Online, Nov. 28, 2012).

Nine other well pairs are expected to be converted in the third quarter, the company said in its second quarter financial report. Athabasca commenced steaming the 15 well pairs in March.

Initial temperature and pressure response in the reservoir and plant reliability meet management’s expectations for the project, which is designed to produce 12,000 b/d.

Seven additional well pairs are planned to be put on circulation in the third quarter and converted to production before yearend. The SAGD project is 20 km southwest of Fort McMurray.

The diluent supply pipeline is operational, and startup of the dilbit pipeline to the Cheecham terminal is “on track” for yearend.

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