Project Updates - January 2026
PATENTS ISSUED AND PATENT APPLICATIONS OF NOTE – January 2026
D54 PROJECT REVIEWS – January 2026
Athabasca: Hangingstone SAGD
Performance Update as of June 30, 2025
Reporting Period: January 1 to December 31, 2024
Operational Updates
· Five producing pads with 27 SAGD well pairs and average SOR of 3.4 in 2024
· Drilled and completed two extended-reach well pairs on Pad AA
- 1,400 m laterals completed with liner deployed flow control devices
- Brought on production Q1 2025 with IP90 rates of ~820-950 bbl/d
· Continued expanding NCG co-injection for pressure support, SOR management and emissions reduction
· Continued implementation of steam splitters and FCDs on new well pairs
2025 Activity
· Acquired 4D seismic in Q1 2025
· AER approval for project and development area expansions and lifecycle activities in June 2025
Future Plans
· Continue development of Pad AG drainage area including two additional well pairs proposed for 2027
· Submit surface disposition application for Pad AG
· Evaluating well patterns on the East side of Hangingstone for future development after Pad AG
Athabasca: Leismer SAGD
Performance Update as of June 30, 2025
Reporting Period: January 1 to December 31, 2024
Operational Updates
· Completed expansion project and achieved production of ~28,000 bbl/d
· 8 producing pad drainage areas in 2024
- 54 SAGD well pairs, 21 infill wells and 3 redrills
- L4: 3 redrills began production in Q2 2024
- L8S: 4 well pairs converted to production in Q3 2024
- L7: NCG co-injection began in 2024
· Completed L1 Re-Drills
- 6 extended reach re-drills (up to ~1,600m) from L1 surface facilities to L1, L3, or L4 drainage boxes targeting up to 9m of bypassed pay
- Incorporated liner-deployed FCDs
- IP90 rates of ~375 - 950 bbl/d
· Drilled 4 well pairs on L10
· Suspended L1N5 and L4P5 wells due to flow instability (pad 1 and 4 recovery factors greater than 50%)
2025 Activity
· Progressive oil capacity expansion to 40,000 bbl/d through CPF modifications and new drainage areas ongoing (sanctioned in 2024)
· L10: 4 well pairs drilled in 2024 used to support H2 production in 2025
· L11: spud 6 new well pairs in 2025
Future Plans
· Acquire 4D seismic for L8
· Complete well suspensions at L2P7, L6P3, and L6P5
· Complete L11 pad construction and utility corridor
· Continue to progress sulphur recovery unit installation
· Continue expanding NCG co-injection for pressure support, SOR management and emissions reduction
· Submit development area expansion application to accommodate longer wells at L10
· Evaluate well patterns to the west of Pads L1 and L7 for future development after Pads L10 and L11
Source: Alberta Energy Regulator
Please note that the Alberta Energy Regulator (AER) transitioned to a new protocol in 2021 under which all D54 project reviews submitted by or before June 30th of a given year will be posted during the first quarter of the following year. Summaries for 2-3 project reviews per January will be featured in this publication over the course of a given year once they become available. All available presentations can be viewed online by clicking the source link.
DOB ARTICLES OF NOTE – January 2026
Cardinal
· “Cardinal’s Reford Projects Exceeds Nameplate Capacity” – Early productivity from the wells has been stronger than anticipated, with the company forecasting Reford volumes of 6,500 bbl/d in the first quarter of 2026. (January 13, 2026)
Headwater
· “‘Strong’ Results for Headwater in Q4” – The company reported average Q4 production volumes of 24,250 boe/d, a 12 percent year over year production per share growth. (January 16, 2026)
Imperial
· “Lower Oil Prices, One Time Costs, Impact Imperial Oil’s Fourth Quarter Earnings” – The company reported its Q4 2024 financial update noting that Cold Lake averaged 153,000 bbl/d with first oil achieved at the new Leming SAGD project. (January 30, 2026)
IPC
· “International Petroleum Begins Steam Injection at Blackrod Phase 1” – IPC forecasts first oil production at the Blackrod Phase 1 project to occur in Q3 2026, a quarter earlier than originally guided. (January 5, 2026)
Other
· “Deloitte Forecasting Improved Oil Prices in Second Half Of 2026” – Deloitte is forecasting an average of US$58/bbl WTI for this year, down from $65.58/bbl in 2025. (January 7, 2026)
· “Developer Of Plant-Based Solvent Aims to Revolutionize Bitumen Recovery” – Mohammad Alikarami, CEO of Calgary-based BioOilSolv, says he has developed a solvent for steam-assisted gravity drainage (SAGD) operations from an abundant natural feedstock. (January 8, 2026)
· “Bringing The Canada-Alberta MOU to Fruition, Part 1 – Potential And Impediments” – Part 1 of this two-part series looks at the MOUs potential to reduce emissions in Alberta and the major impediments facing a new bitumen pipeline to the B.C. coast. (January 12, 2026)
· “CIBC Analysts Expecting Wider Discount On Heavy Oil This Year” – The bank estimates the differential between Western Canada Select, the heavy Alberta blend, and West Texas Intermediate, the U.S. light oil benchmark, will average US$14.25/bbl in 2026. (January 14, 2026)
· “Bringing The Canada-Alberta MOU To Fruition, Part 2 – A Roadmap Forward” – A possible roadmap for overcoming B.C. government and Coastal First Nations opposition to a new pipeline to the northern coast of the province is discussed in the second part of this 2-part series. (January 15, 2026)
· “Venezuela’s Oil Recovery: Analysts See Limited Threat to Canadian Heavy Crude” – Even with U.S. backing, deep political uncertainty, degraded infrastructure and high investment risk limit the pace and scale of any production rebound, leaving Canada’s heavy crude largely insulated from near-term competitive pressure. (January 28, 2026)
· “Cenovus Drilled the Most Wells In 2025” – Based on wells rig released, including experimental/test wells, Cenovus was the top operator across Canada during 2025 with 687 wells drilled followed by CNRL with 469 and Tourmaline with 316. (January 30, 2026)
· “Timing Right for Canadian Heavy Oil, Says Pathways Alliance Head” – Kendall Dilling, president of Pathways Alliance fears Canada is in a bit of a similar situation with heavy oil as with LNG a decade ago when the country largely missed out on a massive opportunity. (January 30, 2026)
Source: Daily Oil Bulletin
TECHNICAL PUBLICATIONS OF NOTE – January 2026
Research
· SPE 231177-PA: Microemulsion-Assisted Fracturing-Flooding: An Eco-Technical Alternative to Thermal Recovery for Marginal Extra Heavy Oil
· SPE 231163-PA: Identification of Enthalpy Injection Thresholds in Butane-Steam-Assisted Gravity Drainage
REGULATORY APPLICATIONS OF NOTE – January 2026
Baytex
· 1960283: Baytex submitted an application for an enhanced oil recovery scheme through class II water injection in the Dawson field within the Peace River Oil Sands Area 2.
Cenovus
· 1960362: Cenovus requested approval to extend the duration of the temporary maximum operation pressure increase on drainage patterns B14-11 and B10-11 at the Sunrise Thermal Project to allow for continued start-up operations.
CNOOC
· 1960241: CNOOC requested approval to modify the caprock monitoring clause at one Long Lake observation well to remove the 100 kPa notification requirement for the Clearwater C vibrating wire piezometer at 160.34 m TVD.
CNRL
· 1960322: CNRL submitted an application to amend the enhanced recovery scheme at the Wabiskaw McMurray deposit in the Athabasca Oil Sands Area. CNRL proposes to down space for horizontal and/or horizontal multi-lateral development and to remove interwell spacing for the entire approval area to enhance bitumen recovery.
Obsidian
· 1960355: Obsidian requested approval to establish a new waterflood in the Spirit River Deposit of the Peace River 2 Oil Sands Area with two water injectors. Obsidian proposes to inject water to pressurize the zone and sweep oil from the injectors to the offsetting producers through horizontal displacement and expects that sweep efficiencies will be 5-20% depending on zone conformance.
Spur
· 1960258: Spur submitted an application to expand the approval area in the Clearwater Deposit of the Athabasca Oil Sands area to include sections 16-074-25W4 and E/2 of Section 17-074-25W4 and one multi-lateral water injection well.
Source: Alberta Energy Regulator
Project Updates - January 2026