Project Updates - March 2026
Patents Issued and Patent Applications of Note – March 2026
Source: United States Patent and Trademark Office
[1] 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>=20260301<=20260331
D54 Project Reviews – March 2026
CNRL: Jackfish SAGD
Submitted: December 17, 2025
Reporting Period: January 1, 2024 to December 31, 2024
Operational Updates
· Pad XX SAGD ramp-up began January 2024
· Pad S SAGD ramp-up began May 2024
· Start-up of 11 re-drilled production laterals across Jackfish 1, 2 and 3
· Re-drills continue to be effective in maximizing resource recovery
· Positive impacts observed in increased oil rates and reduced iSORs
· NCG co-injection expanded to 25 pads, new capability on MM, QQ, EEE
· Used for steam re-allocation and reservoir pressure management
· Improved SOR and increased WSR observed
· Flow Control Devices implemented for conformance improvement
· Central Processing Facility Modifications completed:
· Pipeline interconnects for the Emulsion/Field Gas/Steam lines installed between Jackfish 3 and Jackfish 2 – completed July 2024
· Plant reliability initiatives across district implemented:
· Steam generator reliability improvements and material upgrades
· Steam generator throughput trial completed
· Hot lime softener reliability improvements
· Source and disposal upgrades
· Additional sulphur removal unit reliability initiatives and expansion projects ongoing
· Coating optimization on the weak acid cation exchange unit
- Produced water heat exchanger material upgrades
Well Integrity
· Thermal well integrity monitoring maintained across Jackfish
· 270 wells tested for SCVF/GM; four new serious wells added
· Six surface casing failures identified; intermediate casing inspected
· Casing Integrity Management Protocol continued
· 20 wells thermally tested with no issues
· Real-time thermal compatibility monitoring in place
Plans
· Continue monitoring NCG performance
· Add NCG at Pads O, R, G, OOO in 2025
· Continue ongoing long string NCG and steam co-injection trial
· Evaluate re-drill program and future opportunities
· Expand Clearwater B disposal capacity
· Pad TT circulation planned for Q1 2025
· Acquire additional 4D seismic
CNRL: Peace River
Submitted: December 9, 2025
Reporting Period: January 1, 2024 to December 31, 2024
Operational Updates
· Initiated CSS steam cycle on Pads 32 and 33 in 2024
Well Integrity Summary
· No casing failures or well integrity issues on any thermal or utility wells
Plans
· Continue evaluating future development opportunities
CNRL: Cold Lake Clear Water Conductive Heating Project
Submitted: March 1, 2024
Reporting Period: January 1 to March 1, 2024
Pilot Overview
· Designed to assess Clearwater primary recovery potential using conductive heating technologies
· Project consists of three horizontal wells: one heater‑cable well, one hot‑fluid circulation well, and one control well
· Control well pump failures due to high viscosity of Clearwater oil and ineffective wellbore heating
· Experimental scheme expired March 1, 2024, no future pilot work planned
Performance & Learnings
· Pilot confirmed feasibility of primary Clearwater recovery through conductive heating
· Horizontal well with heat cable (103/10-34) outperformed other wells by hot fluid circulation
· Heat cable provided uniform heating along the wellbore
· Wells with hot fluid circulation cannot achieve uniform temperature along the wellbore
· Hot‑fluid circulation well with VIT tubing showed improved heat distribution and higher recovery
· VIT tubing in hot‑fluid circulation wells significantly improves heating beyond heel‑only warming
· VIT tubing accelerated primary recovery to approximately twice the rate of non‑insulated circulation tubing
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 March 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 – March 2026
Alvopetro
· “Alvopetro Continues to Add to Mannville Stack Acreage” – The company now has 80.5 gross sections (25,760 net acres) targeting the Mannville stack heavy oil play fairway, with over 100 Tier 1 drilling locations. (March 19, 2026)
Athabasca
· “Athabasca Forecasts Production Growth in Second Half Of 2026” – Thermal oil capital expenditures are expected to account for $273 million of the 2026 capital program, with production of 32,000 to 34,000 bbls/d. (March 10, 2026)
Baytex
· “Baytex Has Optionality for Increased Production With Higher Oil Prices, Says COO” – Baytex could potentially expand its capital program with another pad in the Duvernay and could also pivot to the Peace River area where it has exploration work underway. (March 6, 2026)
Cardinal
· “Cardinal Advancing Reford 2 Project” – The company believes that its development planning is ahead of schedule when compared to the same stage of workflows at the beginning of Reford 1. (March 16, 2026)
Cenovus
· “Tenaris, Cenovus Complete Testing Program for Shallow Thermal Well Design” – The initiative examined new approaches to shallow well drilling and thermal pad development, focusing on how premium casing connections perform under high-temperature operating conditions. (March 9, 2026)
· “Cenovus Invests $2 Million In Chemical Engineering and Business Experiential Programs at U of C” – The company is investing in two hands-on learning labs at the University of Calgary that will train students at the university’s schools of chemical engineering and business in practical work found in the energy industry. (March 27, 2026)
CNRL
· “CNRL Delays Work on Jackpine Mine Expansion, Awaiting Clarity on Emissions Regulations” – The project is expected to add an incremental 150,000 bbls/d from an expansion of the existing Jackpine mine with a targeted start up of 2031. (March 5, 2026)
· “Canadian Natural Reports Record Production In 2025, But Prices Keep Earnings Flat” – CNRL reported annual production of 1.571 million boe/d in 2025, a year-over-year growth of 15 percent. (March 5, 2026)
· “CNRL Reports Billion Barrel Jump in Reserves” – CNRL replaced 2025 production by 218 percent on a total proved basis and 212 percent on a total proved plus probable basis and reported that SCO and bitumen from the Horizon and Albian mines represent approximately 50 percent of total proved reserves. (March 6, 2026)
· “CNRL Maintaining Activity in Volatile Commodity Markets” – The company outlined updates on capital expenditure plans and noted that it has diversified its heavy oil production marketing portfolio, with 256,000 bbls/d of egress between the U.S. Gulf Coast and the West Coast of Canada. (March 6, 2026)
Greenfire
· “Greenfire Lowers Production Outlook” – The company reported average annual production of 16,169 bbls/d for 2025 and that it would be lowering its 2026 production guidance to 13,500-15,500 bbls/d. (March 17, 2026)
Headwater
· “Secondary Recovery Helps Lower Headwater’s Corporate Decline Rate” – Headwater reported positive results across its assets and noted that it continues to add duration in the Clearwater Sandstone and Clearwater E formations through boundary extensions and secondary recovery development. (March 9, 2026)
Lycos
· “Lycos In Strategic Business Combination with Mahikan Oil” – Mahikan Oil is a privately-held, arm’s length, heavy oil producer with prospective land positions for multiple stacked Mannville targets, including the Waseca, Sparky, General Petroleum, and Lloydminster formations. (March 9, 2026)
Rubellite
· “Rubellite Continued Bringing on Heavy Oil Wells in Q4” – The company reported a total of 46 (39 net) new heavy oil wells contributing to 2025 sales. (March 12, 2026)
· “Rubellite Plans To Spend $30–$32 Million in Q1” – The company outlined spending plans to support initiatives such as advancing multiple EOR Clearwater pilots, a polymer flood pilot, and drilling at Figure Lake. (March 12, 2026)
Source Rock
· “Source Rock Sells Oilsands Leases at A Gain, With Retention” – The company sold two sections of Alberta oilsands leases to an operator with expertise in drilling multi-lateral heavy oil wells. (March 24, 2026)
Strathcona
· “Strathcona Output in Line with Expectations” – The company reported Q4 2025 production of 118,000 boe/d noting year-over-year increases at Cold Lake driven by the continued ramp up of lower drainage wells at Orion. (March 13, 2026)
· “Strathcona Acquires Operated Working Interest in Selina Project” – The company estimates approximately 160,000 bbls of recoverable oil at Selina and expects to develop it efficiently over time by leveraging its existing central processing facility at Lindbergh. (March 13, 2026)
Suncor
· “Suncor Forecasting a Jump in Production By 2028” – The company expects to increase upstream production by 100,000 bbls/d over the next three years. (March 31, 2026)
Other
· “Alberta Government Investing in Tech to Clean Up Tailings Ponds” – Delivered through Emissions Reductions Alberta (ERA), funding will support nine real-world projects including technologies to remove bitumen and chemicals from mine water, dry and settle tailings faster, and use wetlands to naturally and safely clean water. (March 5, 2026)
· “Hormuz Closure Buoys Canadian Producers” – Heavy sour Western Canadian Select (WCS) - the key bellwether for heavy crude in Canada - has been trading at a discount of around $11.45/bbl to Calendar Month Average Nymex WTI, the smallest discount since October. (March 27, 2026)
Source: Daily Oil Bulletin
Technical Publications of Note – March 2026
Research
· SPE-36459-MS: Innovation and Practice in Steam Stimulation Development Technology for Thin Interbedded Heavy Oil Reservoirs with Multiple Oil-Water Systems in the Bohai Sea
· SPE-36500-MS: Experimental Study on Rheological Characteristics of Non-Newtonian Fluids and Production Prediction in Heavy Oil Cold Production
· SPE-36559-MS: Experimental Study and Time-Varying Characterization of Long-Term Water Flooding in Offshore Heavy Oil Fields
Reservoir Engineering and Development
· SPE-227938-PA: Alkali-Polymer Flooding after Polymer Flooding: Field Test Results
· SPE-36530-MS: Heating Law and Applicability Study of Reservoir Electrical Heating Technology in Horizontal Wells of Offshore Heavy Oil Fields
· SPE-36576-MS: Pilot Tests of Thermal Chemical Flooding in Bohai Offshore Heavy Oil Field
Regulatory Applications of Note – March 2026
Baytex
· 1960755: Baytex requested approval to increase the maximum wellhead injection pressure of three injection wells where the formation top is deeper than 400 metres in its waterflood in Bluesky Formation at the Harmon Valley North Field.
Clear North
· 1960766: Clear North requested approval to expand the scheme area and add one multi-lateral horizontal injection well to the Spirit River Formation.
CNOOC
· 1960921: CNOOC requested approval to drill additional brownfield SAGD wells at Long Lake Pads 16 and 17.
CNRL
· 1960976: CNRL requested approval to amend the edge well taper calculation at the Primrose and Wolf Lake In Situ Project. CNRL proposes that calculation be based on formation expansion index rather than volume above fill-up to allow for even uplift and more efficient steam volumes when executing small conditioning cycles.
CNUL
· 1960707: Canadian Natural Upgrading Limited (Canadian Natural) requested approval for four new multilateral wells at Peace River.
Obsidian
· 1960737: Obsidian submitted a post-drill application to commence water injection via two previously approved undrilled injectors that have since been drilled and completed in the Spirit River Deposit.
Strathcona
· 1960860: Strathcona requested lifecycle approval to inject NCG into both the Lloydminster and Rex Formations of the Lower Grand Rapids Deposit well pads within the Lindbergh Thermal Project approved development area.
Suncor
· 1960932: Suncor requested approval to enable it to appropriately address existing wells that are not thermally compatible thermal operations at its MacKay River Project.
Source: Alberta Energy Regulator