Global Leader in International Oil and Gas Industry News

posted in:

  • Home>
  • Oil & Gas News
  • >
  • North America,
  • >
  • Athabasca Oil Corporation sanctions Hangingstone SAGD project, updates on light oil activity and announces executive appointments

Athabasca Oil Corporation sanctions Hangingstone SAGD project, updates on light oil activity and announces executive appointments

Thursday, Nov 29, 2012

CALGARY, Nov. 28, 2012 /CNW/ - Athabasca Oil Corporation (TSX: ATH) announces the sanction of its Hangingstone 1 SAGD Project and reaffirms that its Light Oil Division is on track to meet its year-end production target of 10,000 to 11,000 barrels of oil equivalent (boe/d). In response to achieving these significant corporate milestones, the Board of Directors announces executive appointments, effective immediately, to bolster the Company's transformation to an exploration
and production (E&P) company.

The Board of Directors has sanctioned the $536 million development budget for the Hangingstone Project 1, comprised of a 12,000 bbl/d central processing facility and four well pads with five SAGD well pairs per pad. Athabasca expects to develop this 12,000 bbl/d thermal oil project at a cost of $44,700 per barrel, exclusive of the $27 million of supporting infrastructure.

The drilling of SAGD well pairs is planned to commence, in mid-2013, at the Hangingstone Project 1, with the facility commissioning and start-up scheduled for Q4 2014. First steam is anticipated before year-end 2014, followed by first production in early 2015.

Athabasca plans to follow up the Hangingstone Project 1 with two consecutive SAGD projects, bringing the area's potential production to more than 80,000 bbl/d.

The Company continues to advance its Montney and Duvernay development, in Alberta's liquids-rich Deep Basin. Montney well results continue to meet or exceed the Company's expectations. Athabasca's Duvernay fairway consists of more than 300 high-graded net sections with significant potential.

The Light Oil Division is currently producing approximately 4,000 boe/d.
Commissioning of the Kaybob East and Saxon facilities, by mid-December, should enable Athabasca to achieve its year-end exit rate guidance of 10,000 to 11,000 boe/d.

"I am very pleased with the production test results, and with the rapid and extensive build-up of production infrastructure in the Kaybob and Saxon areas," said Sveinung Svarte, chief executive officer. "I am particularly encouraged by the test results of our third Duvernay well which had strong flow rates and exhibited steady formation pressures towards the end of the test period.

Athabasca, like other E&P operators, sees tremendous Duvernay potential in this part of the Deep Basin."

Source: Athabasca Oil Corporation

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today

posted in:

  • Home>
  • Oil & Gas News
  • >
  • North America,
  • >
  • Athabasca Oil Corporation sanctions Hangingstone SAGD project, updates on light oil activity and announces executive appointments

Other Oil & Gas News

Aquaterra Energy wins Premier Oil Catcher Drill Centre Template contract 23-04-2014
Claxton’s camera upgrade puts crane safety in the picture 23-04-2014
Elk acquires the Singleton Unit in Nebraska 23-04-2014
Longreach prepares to drill into target Liassic formation with Kamar-1 well in Morocco 23-04-2014
Chevron unveils PitPack motor oil dispensing system 23-04-2014
Farstad Shipping ASA - charter agreements 23-04-2014
Prysmian, € 30 m contract in Abu Dhabi 23-04-2014
Halliburton to build drilling, testing and training facility in Texas 23-04-2014
SEACON (europe) Ltd Receives A Queen’s Award for Enterprise in International Trade 23-04-2014
EnerJex Resources announces Niobrara operations update and development plans 23-04-2014