AOC says Hangingstone 1 SAGD project production hits 8,000 b/d

Athabasca Oil Corp. (AOC), Calgary, said bitumen production from its Hangingstone 1 steam-assisted gravity drainage oil sands project in Alberta has reached 8,000 b/d and is on track to reach design capacity of 12,000 b/d in this year’s fourth quarter.

Hangingstone, about 20 km southwest of Fort McMurray, began production in July (OGJ Online, July 31, 2015). Twenty-one well pairs have been converted to SAGD production and two additional well pairs are on circulation steaming.

AOC forecasts “a relatively flat production profile” at Hangingstone for several years after it reaches design capacity.

The company recently provided early 2016 operational updates along with financial and operating results for 2015. Among these updates included the following:

• In the Montney formation, AOC recently completed a three-well pad at Placid with average drilling and completion costs of $6.9 million/well. A project connecting Placid with AOC’s Kaybob system is on track for commissioning in April.

• In the Duvernay, recent drilling and completion costs have averaged less than $10 million/well. A two-well pad at Kaybob East was recently brought on stream, and production included 44 ° gravity field condensate. The completion design was intended to test increased proppant loading in the volatile oil window.

• In the condensate-rich gas window at Kaybob West, AOC completed drilling operations on a four-well cost demonstration pad in January. Average drilling costs were $4 million/well. The company plans to complete the wells and bring them on stream in the third quarter.

AOC said it “has achieved material cost reductions with the transition to pad style operations and remains encouraged by early production results in the volatile oil window where the Company has significant exposure.”

The $475-million (Can.) light oil joint venture with Murphy Oil Co. Ltd. in the Kaybob area “is progressing towards closing” in the second quarter, the company said.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...