Project Updates - January 2025
Patents Issued and Patent Applications of Note – January 2025
Search criteria: ("sagd" OR "CSS" OR "steam assisted gravity drainage" OR "cyclic steam stimulation" OR "bitumen" OR "thermal recovery" or "heavy oil" or “steam”).AB. AND @PD>=20250101<=20250131
D54 Project Reviews – January 2025
Athabasca: Hangingstone SAGD
Performance Update as of June 30, 2024
Reporting Period: January 1 to December 31, 2023
Operational Updates
· Pad AA expansion construction completed to accommodate two additional well pairs
· Field-wide NCG injection continued for pressure management and energy intensity reduction
· Steam splitters and FCDs implemented on new well pairs
Plans
· Drill 16-25 observation well
· Drill two well pairs on Pad AA
· Evaluate potential for redrill wells on existing pads
· Develop additional sustaining well pads in accordance with production declines
Athabasca: Leismer SAGD
Performance Update as of June 30, 2024
Reporting Period: January 1 to December 31, 2023
Operational Updates
· Eight pads on production (54 SAGD well pairs and 21 infill wells)
- Pad 8 Middle: Converted to production in Q2 2023 and four SAGD well pairs drilled
- Pad 7: four infills drilled July 2023, production began Q4 2023
- Pad 4 well pair producers shut in Q4 2023 for redrill preparation
· NCG co-injection continued on Pads 1-7 for SOR management
· Continued implementation of steam splitters and FCDs on new well pairs
· Submitted application for Development Area expansion, L13 drainage and lifecycle approval
· Preliminary engineering completed for CO2 capture from OTSG 5
· Application for increased development area and L13 drainage area addition approved
Plans
· Redrill three wells on Pad 4
· Complete construction at Pad 10 and drill four well pairs
· Evaluate redrill opportunities for Pad 1
· Suspend two well pairs (L4P5 & L1N5)
· Evaluate CPF modifications and pad additions to increase oil capacity to 40,000 bbl/d
· Finalize evaluation of local CO₂ capture and storage project
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 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 2025
Baytex
· “Clearwater Heavy Oil Producer Achieves Significant Savings With Newly Developed Emulsion Breaker” – SECURE’s new oil dehydrating technology, Emulsion Breaker EB 2003 substantially enhanced Baytex Energy’s operations in northern Alberta by allowing them to meet pipeline specifications efficiently and reducing trucking costs. (January 13, 2025)
Cardinal
· “Cardinal Capex: Focus Is On Completing Reford SAGD Project” – The company aims to complete its Reford SAGD project in 2025 with first steam expected in the third quarter, initial production in the fourth quarter, and full production of 6,000 bbls/d of heavy oil in the first quarter of 2026. (January 15, 2025)
CNRL
· “CNRL Says Differentials Should Remain Strong; Company ‘Prepared’ For Possible U.S. Tariffs” – CNRL President noted that they’re not overly concerned with weak western Canadian natural gas prices as much of the company’s planned activity is targeting liquids-rich assets. (January 10, 2025)
Headwater
· “Headwater Enters New Operating Area” – Headwater announced a new partnership with the Bigstone Cree Nation (BCN) which supports drilling up to four commitment wells with commensurate bonus payments paid by the company and would result in Headwater earning leases across 34.5 sections of highly prospective land in the Greater Pelican area. (January 7, 2025)
Imperial
· “Alberta Energy Regulator Lays Nine Charges Against Imperial Oil For 2023 Spill” – The charges include failing to report the spill as soon as the company became aware of it, releasing a substance that had or may have had a major impact on the environment, and failing to immediately take all reasonable measures to clean up the spill. (January 20, 2025)
Obsidian
· “Obsidian Gets ‘Head Start’ On 2025 Activity” – The company mobilized two additional drilling rigs late in 2024 to allow it to make a “head start” to 2025 activities and expects expect full year 2024 average production to be approximately 37,450 boe/d based on preliminary estimates. (January 14, 2025)
Suncor
· “Suncor Lifts Production” – The company reported record quarterly production of 874,000 bbls/d and quarterly upgrader utilization of 103 percent. (January 7, 2025)
Tamarack
· “Tamarack Valley’s Multilateral Well Activity In Perryvale” – Operators tested a variety of different multilateral well patterns in the Clearwater heavy oil play in 2024 with an emphasis on optimizing production and managing costs. Tamarack was the most active operator at Perryvale in 2024 and its top two wells with at least three months of production brought onstream were both fan patterns. (January 15, 2025)
Other
· “2025 Capex Trends: Midstream Companies Position For Canadian Growth” – The latest guidance report covers announcements made Dec. 2-13, including for Baytex, Cenovus, Imperial Oil, Suncor and Tamarack Valley. (January 8, 2025)
· “Canada’s Largest Energy Associations Form Working Group To Push Back On Tariff Threat” – The Canadian Association of Petroleum Producers (CAPP), Pathways Alliance, Enserva, the Explorers and Producers Association of Canada (EPAC), and the Canadian Association of Energy Contractors (CAOEC) are working together to support cross-Canada efforts to prevent tariffs from being placed on Canadian oil and natural gas exported to the United States while also preparing to mitigate impacts in the event those tariffs become a reality. (January 13, 2025)
· “Alberta's Premier Is Seeing Interesting Pipeline Proposals. Here’s Who She Views As Key In the U.S. To Advancing Projects.” – Alberta Premier Danielle Smith said that Canada has learned that using existing rights of way by expanding existing pipelines, looping or adding compression, is a faster track to being able to get projects built and that Doug Burgum is the most important secretary to engage with. (January 22, 2025)
· “Canada’s Future Series, Part 1 – The Best Strategy To Counter Trump Threat – The first part of this three-part series will focus on possible strategies for countering the Trump threat to Canada and through a process of elimination come up with the best one. (January 31, 2025)
Source: Daily Oil Bulletin
Technical Publications of Note – January 2025
Reservoir Engineering and Development
· 216662-PA: Measurement of Acrylamido Tertiary Butyl Sulfonate Polymer Retention on Limestone by Three Methods Under Varying Temperature and Oil Presence
· 223943-PA: Investigation of Dynamic Adsorption and Desorption of Polymer Nanogel in Porous Media through Microfluidics
· 218051-PA: Integrated Characterization of Expanding-Solvent Steam-Assisted Gravity Drainage (ES-SAGD) Processes by Using a Heat-Penetration Criterion within a Unified, Consistent, and Efficient Framework
· 223977-PA: Quantification of Mutual Mass Transfer Coupled with Heat Transfer for CO2/C3H8-Heavy Oil Systems Under Reservoir Conditions
Regulatory Applications of Note – January 2025
ConocoPhillips
· 1956484: ConocoPhillips applied to add an extreme weather clause to the conditions regarding bottom hole pressure measurement. When temperatures reach approximately minus 30°C with windchill and the methane gas system transmitter fails, the company requested approval to use steam injection pressure transmitters to measure bottomhole injection pressures.
Headwater
· 1956493: Headwater requested approval to amend the enhanced recovery scheme in the Clearwater by adding the 103/13-34-074-25W4 MHZ well as an injector.
Imperial
· 1956460: Imperial requested approval to implement the Solvent Assisted – Steam Assisted Gravity Drainage (SA-SAGD) process to develop the Clearwater resource at the southwestern edge of its Cold Lake Oil Sands Project.
Islander
· 1956385: Islander requested approval to develop the proposed Chipmunk North Thermal Experimental Project for an experimental bitumen recovery scheme in the Peace River Oil Sands Area. The Project will target partially depleted Pekisko reservoirs, utilizing steam injection to stimulate (below fracture pressure) and enhance recovery from individual heavy oil reservoirs at existing single well oil battery well pads. Cyclic and concurrent steam injection methods will be tested on the existing vertical and new horizontal wells to assess reservoir response and recovery efficiency.
Obsidian
· 1956490: Obsidian requested approval to establish a new Waterflood recovery scheme in the Bluesky-Gething Deposit of the Peace River 2 Oil Sands Area. The company proposes to inject water to pressurize the zone and sweep oil from the injector to the offsetting producers via one new injection well.
Strathcona
· 1956728: Strathcona requested a life-cycle approval for advancing infill, multilateral, sidetrack, sub-producer and redrill wells (collectively referred to as Brownfield Wells) on all existing Steam Assisted Gravity Drainage (SAGD) pads and future pads within existing and future approved drainage patterns at its Orion project.
Suncor
· 1956444: Suncor requested approval to extend the well lengths and the corresponding drainage pattern at Pad 828 of the MacKay River Project.
Tamarack Valley
· 1956677: Tamarack Valley requested approval to amend its enhanced recovery scheme in Sections 10 and 11 of Township 075-25W4 of the Clearwater by expanding the development area and adding three new injector wells.
Source: Alberta Energy Regulator