Project Updates - February 2026
Patents Issued and Patent Applications of Note – February 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>=20260201<=20260228
D54 Project Reviews – February 2026
CNRL: Primrose/Wolf Lake
Performance Update as of December 10, 2025
Reporting Period: January 1 to December 31, 2024
Operational Updates
· Four injectors abandoned at Burnt Lake
· Regulatory approvals received for Primrose North, Primrose East and Wolf Lake:
- Primrose North Project Area approved for extensions totalling 2.5 sections
- Primrose East 93N approved for 6 CSS wells
- Primrose East 93X approved for 16 CSS wells
- Wolf Lake operation amendment (solvent – SAGD/SF, NCG, steam additives) approved
· Primrose Pad 90 wells re-drilled due to poor original wellbore placement
Lifecycle Summary
· Drilled and rig released drainage boxes 71C and 162
- Lateral wellbores placed 1-2m above reservoir base
- Surrounding Clearwater Formation gas pools associated with CS30A20 facies
- Gas accumulations are localized, discontinuous and sealed from the overlying Grand Rapids Formation by the laterally extensive Clearwater Formation capping shale
- No bottom water accumulations within or in proximity of either drainage box
Well Integrity Summary
· No reported out of zone high pressure failures in 2024
· Majority of casing failures in Primrose East A1/A2 and Primrose South
· 20-year failure by formation data shows drastic decrease in casing failure occurrences in the Colorado formation achieved through extensive usage of premium connections
2025 Activity & Future Plans
· Q1 2025 delineation activities:
- Wolf Lake: 3 strat wells and 1 observation well
- Primrose: 9 observation wells
· Well completions and one new well on Pad 162 to complete pad coverage in Q1 2025
· Primrose North Project Area Extensions at Pads 163,164 and 165 with 20-32 new development wells per pad
· CSS wells at Primrose East 93N (6) and 93X (16)
· Wolf Lake Pad SC07 Phase C development with 5 SAGD well pairs
· Primrose North 3D and 4D Seismic acquisition
· Continue evaluation of existing Primrose pads for potential re-drilling
CNRL: Kirby
Performance Update as of December 9, 2025
Reporting Period: January 1 to December 31, 2024
Operational Updates
· New disposal water pipeline connecting Kirby North and Kirby South disposal systems constructed and put into operation to maximize disposal between the two facilities in Q3 2024
· Kirby South Highlights:
- NCG injection approval received and started on Pad D (Q1 2024) and Pads B and C (Q2 2024)
- KS21 Pad well pairs and KS B0 well pair converted to SAGD
- Executed E6P re-entry
- Upgrades to evaporators, boilers, utility water systems and addition of silica inhibitor injection on disposal water
· Kirby North Highlights:
- Upgrades to CPF to support light hydrocarbon injection and solvent (light hydrocarbon) recovery facility (SR1)
§ Light hydrocarbon (solvent) co-injection started at KN06 Pad in Q2 2024 with positive results
§ SOR reduction of approximately 30%, trending towards target
§ Light hydrocarbon recovery reached 80% in reservoir with bottom water
- KN07 steam additives pilot started October 2024 on two well pairs
Disposal Water Management Plan
· New disposal water pipeline connecting Kirby North and South disposal systems constructed and put into operation in Q3 2024
- Strong bottom water connection between the Kirby SW pads and the regional McMurray Basal Aquifer system
- Successful McMurray pressure balance system in the Kirby South area
· Kirby Groundwater Model:
- Modelling results demonstrate on-going viability of the pressure balance system in Kirby South
- Regional McMurray Basal Aquifer numerical groundwater model (including calibration) updated in June 2024 to support application for Kirby North disposal well
· McMurray Basal Aquifer Pressure Management Strategy:
- Approval received in 2024 for F1/13-05-075-08W4 Clearwater disposal well at Kirby North
- 2024 actual disposal was 48% of the 2024 disposal limit
- CNRL continues to evaluate potential regional disposal opportunities in the McMurray Basal Aquifer to ensure the Kirby future disposal demand is met
Well Integrity
· Well integrity program includes all wells in its thermal assets, focusing on zonal isolation efficiency, fluid and pressure containment, and thermal compatibility
- 52 wells in Kirby North, and 51 wells in total in Kirby South tested for surface casing vent flow/gas migration (SCVF/GM) in 2024
- Of the tested wells, only two presented vent flow characteristics indicative of possible casing impairments and both were suspended as a precaution
· Risk-based methodology implemented annually to identify and check surface casings of thermal wells
- 18 wells tested in Kirby South in 2024 with two failures identified (11.1% failure rate)
- 89 wells tested to date with six surface casing failures detected (6.7% failure rate)
· CNRL uses a Casing Integrity Management Protocol in SAGD Operations used to investigate and detect casing failures using non-intrusive and intrusive methods
- Developed Thermal Wellbore Compatibility Assessment for SAGD Operation document to assess risk associated with wells within 300 metres of the drainage box in its SAGD assets
2025 Activity & Future Plans
· Kirby North:
- Approval received for Upper Mannville II Gas Baseline Sample and Clearwater Disposal Well Amendment in 2025
- Application submitted for revised surface pad location in Q3 2025
- Ongoing monitoring of light hydrocarbon co-injection at KN06
- Plans to complete three KN02 redrills in Q2 2025
· Kirby South:
- Approval received for Pad S and E NCG amendments in 2025
- Applications submitted for Pad G diluent co-injection and F1/11-13 disposal well in Q2/Q3 2025
- Plans to complete A8, A9 & D2 redrills/re-entries and G-Pad (G12-G16) step out drilling Q1/Q2 2025
- Plans to commence NCG co-injection at pads A & E pads in 2025
- Add NCG co-injection capability on pads KS21, KS22, KS-A and KS-G
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 February 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 – February 2026
Cenovus
· “Cenovus Reports Record Production In Fourth Quarter” – Cenovus achieved record quarterly oilsands production of 726,600 boe/d including record rates at Foster Creek and Sunrise. (February 19, 2026)
· “Cenovus Integrating MEG Acquisition Into Christina Lake Operations” – Cenovus had identified approximately $150 million in near-term savings from the acquisition, including approximately $120 million in corporate costs. (February 20, 2026)
· “Cenovus Launching Solvent Project At Spruce Lake North SAGD Development” – The company has a target of raising its conventional heavy oil production to 145,000 bbls/d in the next few years which will include a commercial solvent flood at its Spruce Lake North operations in Saskatchewan. (February 24, 2026)
ConocoPhillips
· “Venezuelan Crude Unlikely To Affect Canadian Heavy: ConocoPhillips” – ConocoPhillips’ CFO does not expect the resumption of Venezuelan crude production to have much of an impact on Canadian heavy oil in the short and medium term, noting that U.S. PADD 2 refiners rely on Canadian heavy crude and have few alternative options to displace those heavy barrels. (February 6, 2026)
· “Surmont Assets Performing Strongly, Says ConocoPhillips” – Bitumen production averaged 133,000 bbls/d in 2025, up eight percent from an average of 122,000 bbls/d in 2024. (February 6, 2026)
Gibson
· “Gibson Deal Connects Mannville Stack Operators To Expanded Markets” – Gibson’s CEO, Curtis Philippon announced the $400 million deal, noting that the resurgence of activity in the heavy oil Mannville Stack is due to the adoption of open hole multilateral drilling and disciplined development programs. (February 11, 2026)
Imperial
· “No Big Impact From Return Of Venezuela Crude To Market, Says Imperial” – Imperial’s president and CEO stated that the company hasn’t seen big changes and that although the differential expanded slightly originally, the impact was marginal. (February 2, 2026)
· “Wet Weather A Detour On Imperial’s Quest To Improve Kearl Mine Performance” – Gross bitumen production at Kearl averaged 274,000 bbls/d in the fourth quarter, down 42,000 bbls/d from record third quarter production. (February 3, 2026)
· “Imperial Advancing SAGD And SA-SAGD At Cold Lake” – The success of the Grand Rapids project (producing well ahead of expectations at ~23,000 bbls/d) has proven both the effectiveness of SA-SAGD and that Imperial can produce economically from the Grand Rapids formation. (February 3, 2026)
IPC
· “International Petroleum Corp. Head Keen On Future Blackrod Expansions” – The President and CEO noted that the Blackrod already has regulatory approval for another 50,000 bbls/d. (February 12, 2026)
· “Blackrod Project Drives International Petroleum's $122-Million Capital Budget” – The $116 million allocated to Canada includes $90 million for Blackrod Phase 1 SAGD Project, $21 million for other assets and $5 million for abandonment. (February 12, 2026)
Obsidian
· “Obsidian Focused On Organic Reserves Growth After Pembina Disposition” – The company reported proved reserves of 104.8 million boe, including 26.1 million bbls of light and medium crude and 28.5 million bbls of heavy crude noting that the uptick was driven by infill wells and field extensions in both Peace River and Willesden Green. (February 6, 2026)
· “Obsidian’s Q4 Operations In Peace River Affected By Cold, Snow” – Extreme cold and snow accumulation led to issues transporting Obsidian’s oil out of the area and increased its tank inventory, ultimately impacting production volumes by approximately 500 boe/d for the quarter. (February 20, 2026)
Suncor
· “Record Operational Performance Continues At Suncor In Fourth Quarter” – Fourth quarter upstream production averaged 909,000 bbls/d, 34,000 bbls/d higher than the same quarter of 2024. (February 4, 2026)
· “Suncor Achieves Three-Year Targets A Year Early, With More To Come, Says CEO Kruger” – The company plans to release a new three-year and 15 year plan in March noting that the longer-term horizon will focus on bitumen supply and development, including its potential Lewis SAGD project and expansions at Firebag. (February 4, 2026)
· “Small Changes Result In Big Improvements At Suncor Mining Operations” – The company reported record bitumen production of almost 993,000 bbls/d in Q4 2025, driven by continuous improvements in mining performance. (February 5, 2026)
Tamarack
· “Tamarack Valley’s Clearwater Production Up 16 Per Cent In Q4” – The company reported average production of 50,049 boe/d in Q4 2025, a 16 percent increase compared to 43,288 boe during the same period in the prior year. (February 26, 2026)
Other
· “Focus Asia: How U.S. Pressure On Venezuelan Crude Opens Canadian Export Opportunities” – Another market for Canada may have been inadvertently created and could provide impetus for both the Trans Mountain expansion and a new northwest coast pipeline. (February 3, 2026)
· “Canadian Oil To Asia Is ‘Kicking Up’” – Chinese refiners have shown increased interest in the Canadian high-TAN Pacific Blend pool, which is largely comprised of Access Western Blend (AWB) dilbit – a blend of heavy asphalt and light naphtha. (February 6, 2026)
· “Pathways Alliance Changes Name To Oil Sands Alliance” – The name change was made to better reflect the purpose and mandate of the organization to promote growing the oilsands industry and continues to represent five of Canada’s major oilsands producers. (February 23, 2026)
· “Alberta Bitumen, Oil Royalties To Fall In Coming Fiscal Year” – The Alberta government is set to take in fewer bitumen and oil royalty dollars in the 2026/2027 fiscal year, with the province forecasting a ballooning deficit. (February 26, 2026)
· “Alberta Government Funding Pre-Feasibility Study For Bitumen Pipeline To West Coast” – According to the government, this $7 milion investment will enable early planning work for an oil pipeline to the West Coast of Canada and development of a credible submission for federal government consideration under the Building Canada Act as a project of national interest. (February 26, 2026)
· “Alberta Government Expects ‘Robust’ Oil Production Growth, Positive Outlook For Natgas” – The province noted that Alberta’s bitumen and conventional oil production will reach over 4.3 million bbls/d 2027, “maintaining the province’s status as one of the largest oil producing regions in the world”. (February 26, 2026)
Source: Daily Oil Bulletin
Technical Publications of Note – February 2026
Production
· 0226-0006-JPT: Case Study: Reducing OPEX and Boosting Production in Oman Heavy-Oil Fields With Downhole Spring-Loaded Valve Technology
· SPE-230259-PA: Field Implementation of a New Inflow Control Device Design in the Surmont I Steam-Assisted Gravity Drainage Operation
· SPE-231047-MS: Steam Metering Evaluation and Improvement in Steam Flood Operation
Research
· SPE-231439-PA: Experimental Analysis of Dimethyl Ether and Natural Gas Condensate Performance in Expanding Solvent-Steam Assisted Gravity Drainage Process
· SPE-230563-MS: Nanotechnology Sets a New Standard for Water Control in the Chichimene Heavy Oil Field
Reservoir Engineering and Development
· SPE-231863-PA: Decision-Making Under Uncertainty: Pressure Management and Optimal Well Pattern for Steamflooding
· SPE-231424-PA: Theoretical Modeling of Gas Exsolution and Liberation during Foamy-Oil Flow in Porous Media
Regulatory Applications of Note – February 2026
Baytex
· 1960504/574: Baytex requested approval to establish a class II water injection enhanced recovery scheme within the Dawson field in the Peace River Oil Sands Area 2.
Cenovus
· 1960404: Cenovus requested approval for Pad W19 well additions at the Foster Creek Thermal Project in order to trial SAGD recovery. The proposed trial would include two additional injection wells to the conductively heated zone of the Clearwater and up to four additional well pairs to the west of that zone.
· 1960423: Cenovus requested approval to complete alterations to the Narrows Lake Thermal Project (NLTP) Wells Package 2 well pad layouts. Specifically, Cenovus is planning to amend the existing and approved drainage box for the X04 well.
Headwater
· 1960465: Headwater requested approval to amend the enhanced recovery scheme in the Upper Grand Rapids and Lower Grand Rapids Deposits of the Athabasca Oil Sands Area by adding one horizontal injection well to enhance aerial sweep, assist in pressure maintenance, and improve recovery.
· 1960695: Headwater requested approval to expand the scheme area and add one multi-lateral horizontal injection well to the Clearwater Deposit in the Athabasca Oil Sands Area.
Imperial
· 1960690: Imperial requested approval for amendments at Cold Lake and submitted a Brownfield Lifecycle application. Amendments would include expanding the Clearwater and Grand Rapids development area to match the project area, the addition of SAGD and SA-SAGD recovery technologies in the Clearwater development area, the addition of infills in the Grand Rapids development area, expanding NCG co-injection for all SAGD/SA-SAGD pads, the approval of future SAGD/SA-SAGD drainage areas, and an amendment to Nabiye initial steam cycle volumes.
Strathcona
· 1960588: Strathcona requested approval to develop the surface pad for Pad F at the Tucker Thermal Project.
Source: Alberta Energy Regulator